Page 16 - CIMA SCS Workbook August 2018 - Day 1 Suggested Solutions

CIMA AUGUST 2018 – STRATEGIC CASE STUDY

whole. However, as soon as the IA decides to sample a population, there are risks that are
brought into the audit:

Sampling risk - this is the risk that the auditor’s conclusion, based on the results of the sample,
may be different from the result that would have been obtained had all items in the population
been tested. This risk can never be removed if sampling is done but that may not be possible. For
instance, the IA may wish to check that the news editor and the makeup editor meet to agree
placement is per the guidelines. This occurs on the day they are there, but they are not in every
region on every day. Another example may be that auditor wishes to check the waste levels are
still at appropriate levels to maintain the ISO 14001 standard.

Non-sampling risk - this is the risk that the auditor may use inappropriate procedures, or
misinterpret evidence that the test results give. As a result the auditor would fail to recognise an
error. This risk is avoidable if auditors use the appropriate procedures, hence the need to ensure
that the IA function is experienced in checking the compliance with regard to publication
operations.

54 KAPLAN PUBLISHING