Discuss two causes of nonsampling risk. Also discuss ways the auditor can control nonsampling risk

What will be an ideal response?

The two causes of nonsampling risk are (1 ) the auditor's failure to recognize exceptions and (2 ) inappropriate or ineffective audit procedures. Careful design of audit procedures, proper instruction, supervision, and review are ways to control nonsampling risk.

Business

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Why would a corporation issue bonds payable instead of issuing stock?

A) Debt is a less expensive source of capital than stock. B) Borrowing by issuing bonds payable carries no risk to the company. C) Debt affects the percentage of ownership of the corporation by the stockholders. D) Debt does not have to be shown on the balance sheet.

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When you display ethos in your persuasive presentation, you have

A) logic B) emotion C) evidence D) credibility

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