2Principle of Auditing

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B. In each of the following cases, name the type of risk. 1. Expenses of an entity are highly aggregated and are shown as summaries. It is difficult for an auditor to examine all transactions relating to such expenses due to complex nature and the errors and misstatements are possible. 2. In estimating the total revenues, an auditor tried to collect evidence by sampling. The method of sampling used by the auditor may not be successful in identifying material misstatements. 3. No procedures are established for certain transactions and there are chances of misuse of material and cash by the employees as well as fraudulent reports