NONSAMPLING RISK Definition

Bookmark and Share

NONSAMPLING RISK is audit risk not due to sampling. An auditor may apply a procedure to all transactions or balances and fail to detect a material misstatement. Nonsampling risk includes the possibility of selecting audit procedures that are not appropriate to achieve a specific objective. For example, confirming recorded receivables cannot reveal unrecorded receivables. Nonsampling risk can be reduced to a negligible level through adequate planning and supervision.

Learn new Accounting Terms

BOND DISCOUNT is the excess of a bond face value over issued price.

CASH FROM INVESTING is the sum of all the individual investing activity cash flow line items.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.