A comparative analysis of judgemental and statistical sampling techniques in auditing in Kenya.
This is a comparative study of judgemental and statistical sampling techniques in auditing. It sought to determine the extent of use of each of the two sampling techniques, and the factors that auditors consider in making a choice between them in Kenya. An attempt was also made to test some of the factors revealed by applying them to a practical audit situation. Data for the study was obtained from auditing firms in Kenya through the use of a questionnaire. A case study, based on a medium size company, was conducted to test some of the factors that may influence the auditors' sampling method decision. The results of the study revealed that judgemental sampling is currently more widely used than statistical sampling in Kenya. The main reason for this is lack of adequate internal controls in many organisations in Kenya. Auditors find it more appropriate to apply professional judgement rather than statistical techniques in such cases. A second major reason for auditors' reluctance to use statistical sampling was found to be the concern that statistical sampling would lead to an increase in training costs. It is implicit ~rom this finding t?at most auditors in Kenya lack adequate statistical knowledge.
School of Business