NONSAMPLING RISK Definition

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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

SECA is Self-Employment Contributions Act of 1954.

PAYABLE is an amount awaiting payment to be made, e.g. interest payable or taxes payable.

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