Non-sampling risk
Non-sampling risk is the risk that the auditor reaches an erroneous conclusion for a reason unrelated to sampling risk. It can arise from an inappropriate procedure, misinterpretation of evidence or failure to recognise an exception. Competent staff, supervision and review help reduce it. The risk can arise even when every item is examined: for example, using an unsuitable audit procedure or misunderstanding a contract can produce an incorrect conclusion regardless of how many records were tested.
Worked example
An auditor examines a document but overlooks that it lacks the required authorisation.
Common mistake
Increasing sample size alone does not fix a poorly designed procedure or an incorrectly interpreted result.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Supporting | September 2026–June 2027 |