What is 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

Examples of nonsampling risk are as follows:

Applying inappropriate audit procedures to an audit.
Errors on how audit test results are collected. For example, an auditor might record client responses to questions incorrectly.
The failure to detect a material misstatement over the course of an audit.
The misinterpretation of audit test results, which can be caused by having preconceived notions about what the results should be.