Final answer:
The risks of incorrect acceptance in variables sampling and of assessing control risk too low in attributes sampling are linked to sampling errors, which can lead to incorrect conclusions about the financial or control aspects of an entity. Mitigating these risks requires larger, randomized samples and proper study design.
Step-by-step explanation:
The risks of incorrect acceptance in variables sampling and of assessing control risk too low in attributes sampling both relate to the potential adverse effects that can occur when the auditor makes an error due to a sample not being representative of the population. These types of risks are associated with sampling errors and can lead to auditors incorrectly concluding that financial statements are free of material misstatement when they are not, or that controls are more effective than they actually are. In variables sampling, incorrect acceptance refers to the risk that the auditor concludes that the true value of a numerical variable is not materially misstated when it actually is. In attributes sampling, assessing control risk too low means the auditor might believe the rate of control failure is less than it actually is, possibly leading to inadequate control and increased risk of misstatement. Both risks can be mitigated by increasing sample size, ensuring a properly randomized sample, and implementing replication and controls in the sampling process.