Sampling Risk
Accounting glossary · Understand, connect, apply
Sampling risk is the possibility that an auditor’s conclusion based on a sample differs from the conclusion that would result from testing the entire population in the same way.
Example
A sample contains unusually few approval failures, so the auditor’s estimate understates how often the control failed across the full year.
Remember the difference
Testing more representative items can reduce sampling risk. Better training and supervision address errors in carrying out or interpreting the procedure.
Browse the accounting glossary · PCAOB reference: AS 2315
Prepared with AI assistance. Examples are fictional and simplified for learning.
Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
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