1. The risk that an error is not identified through sampling is generally considered as sampling risk. This relates to the probability that a misstatement exists in the population but is not selected...

1. The risk that an error is not identified through sampling is generally considered as sampling risk. This relates to the probability that a misstatement exists in the population but is not selected in an auditor’s sample. In contrast, the non-sampling risk is related to an auditor’s failure to recognize errors, for instance, by misinterpreting the results of audit procedures or failing to use or conduct an effective test. Discuss the criticisms of auditors, particularly with regard to claims of auditor negligence. Do you believe that either of the above scenarios (sampling and non-sampling risks) can justify the auditor’s failure? If so, why? What type of measures can be taken by auditors to protect themselves against both of these risks?