Statistical vs. Judgment Sampling: An Empirical Study of Auditing the Accounts Receivable of a Small Retail Store.

Abstract Almost four decades ago, the application of statistical techniques to auditing problems was advocated in accounting literature. Despite the fact that theoretical arguments and debates on statistical sampling, as opposed to judgment sampling, have frequently appeared in professional journals, empirical research on the subject is, indeed, meager. It is the purpose of this paper to report and discuss the results of an empirical investigation in the alternative sampling techniques, statistical versus judgment, in auditing the accounts receivable of a small industrial-supply-retail store. In so doing, it is organized around four sections, statement of the problem, research design and procedure, discussion of the results and findings, and finally implications for future research on the subject. In terms of implications for further research, this study is only a first step towards more complete empirical tests and verifications on the subject. Replicating the research not only to different size firms but also to different industries is essential for drawing generalizations on personal versus statistical sampling.