The degree of audit risk always present in an audit engagement is referred to as a combination of nonsampling and sampling risk. Which of the following is an example of nonsampling risk?

a. The auditor selecting inappropriate auditing procedures.

b. The internal control being more effective than the auditor believes.

c. The auditor concluding the account balance is not materially misstated, but is, in fact, materially misstated.

d. The internal control not being as effective as the auditor believes.

Answer: A

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The degree of audit risk always present in an audit engagement is referred to as a combination of nonsampling and sampling risk. Which of the following is an example of nonsampling risk?

The degree of audit risk always present in an audit engagement is referred to as a combination of nonsampling and sampling risk. Which of the following is an example of nonsampling risk?

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