Studying of Assessing Materiality by Fuzzy Logic Theory

• Main Authors: Meng, Chingjiou, 孟慶久
• Other Authors: Chen, Yingte
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/62945662924908115831

碩士 === 靜宜大學 === 會計學系 === 101 === Traditionally, CPA often meet misstatements during the course of an audit, each of which demands a binary materiality assessment. There should be value in considering the adoption of the fuzzy theory in making materiality assessments. The fuzzy system assess materiality as a continuous characteristic by allowing a misstatement to hold a degree of materiality between 0 and 1. This potentially permits the CPA more flexibility, greater precision, and deeper insight regarding subsequent testing and investigation. A case study demonstrate that a fuzzy system can support CPA combine qualitative factors with the materiality assessment of each misstatement and recognize which misstatements are most worthy of further investigation. This can assist better communication with the audit team and with the customer, and improves procedure consistency across CPAs, engagements, and years.