Types of sampling risk

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srinivas palli (Querist)
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05 March 2012 What are meant by the following?
1.Risk of under reliance,
2.Risk of over reliance,
3.Risk of incorrect rejection, and
4.Risk of incorrect acceptance.

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Guest (Expert)

05 March 2012 Risk of under reliance- placing less reliance than what is required on a certain audit evidence.
Risk of over reliance- placing more reliance than what is required on a certain audit evidence.
Risk of incorrect rejection- rejecting a genuine audit evidence as false when it is true.
Risk of incorrect acceptance- accepting an ingenuine audit evidence as true when it is fasle.