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Title: The extent of use of statistical and non-statistical audit sampling by Maltese external auditors
Authors: Dimech, Karl
Keywords: Sampling (Statistics)
Auditing -- Malta
Issue Date: 2013
Abstract: Purpose The main objective of this study is to analyse the extent of use of statistical and non-statistical audit sampling techniques by Maltese external auditors. In addition, this study also sets out to see which sampling methods are used when auditing large and medium-sized audit clients and the reasons thereof. Design This study was carried out by conducting semi-structured one-to-one interviews with partners and managers from twelve Maltese audit firms. Four of them were Big Four audit firms and the other eight were medium-sized audit firms. Findings This study indicates that non-statistical sampling is used to a larger extent than statistical sampling by Maltese audit firms. This study also shows that the most popular statistical sampling techniques are random sampling and monetary unit sampling. On the other hand, the most popular non-statistical sampling technique is judgmental sampling. In addition, this study also reveals that in general, when auditing large companies and SMEs, the use of non-statistical sampling is predominant. Conclusion This study concludes that non-statistical sampling enjoys more popularity than statistical sampling amongst large and medium-sized Maltese audit firms, even though the use of statistical sampling has increased over the past few years. Value This study provides an insight into the attitudes and preferences of Maltese external auditors towards the use of sampling methods. The use of sampling in Malta can also be improved by increasing the use of statistical sampling, continue using judgment, decreasing the use of haphazard sampling and formulating policies to minimise bias when using non-statistical sampling.
Description: B.ACCTY.(HONS)
Appears in Collections:Dissertations - FacEma - 2013
Dissertations - FacEMAAcc - 2013

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