Nonsampling risk

Nonsampling risk includes all audit risks other than sampling risk. Or, stated differently, nonsampling risk is the probability of arriving at an incorrect conclusion, despite having selected a correct sample. Examples of nonsampling risk are:

  • Applying inappropriate audit procedures 
  • Failure to detect a material misstatement
  • Misinterpretation of audit test results

A high level of audit planning and review can minimize the amount of nonsampling risk.