審計學國立政治大學 2025 第 28 題

第四題 (17 分)：

Suppose you were the auditor of Nvida Company. During prior years' audits you used the classical sampling to test Nvida's accounts receivable. For the current year, however, you decided to adopt the probability proportional to size (PPS) sampling to evaluate whether there are material misstatements in Nvida's accounts receivable balance. Based on Nvida's accounting records, the book value of the ending accounts receivable is $5,500,000. Before executing the sampling plan, you made the following professional judgments and decisions:

(1) Since you would like to be more certain that the ending accounts receivable balance is not materially misstated, you set the audit risk at 5%.

(2) You concluded that there was a high likelihood of misstatement, ignoring internal controls, in accounts receivable. Therefore, you assessed Nvida's inherent risk at 85%.

(3) After conducting the tests of controls, you decided to set the control risk at 70%.

(4) Since you planned to conduct some other substantive procedures in addition to the PPS sampling in auditing Nvida's accounts receivable, you assessed the other substantive procedure risk at 42%.

(5) You estimated the performance materiality of Nvida's accounts receivable to be 15% of its year-end book value.

(6) Based on your knowledge of the changes in Nvida's sales and credit policy, you expected that an overstatement of $450,000 in Nvida's accounts receivable is reasonable.

(7) You obtained the following PPS sampling table from AICPA's Audit Sampling guide:

Test of Detailed Risk	1%	5%	10%	15%	20%	25%
Error Expansion Factor	1.90	1.60	1.50	1.40	1.30	1.25
Reliability Factor	4.61	3.00	2.31	1.90	1.61	1.39
Incremental allowance for sampling error (Ranked Overstatement Error)
1	1.03	0.75	0.58	0.48	0.39	0.31
2	0.77	0.55	0.44	0.34	0.28	0.23
3	0.64	0.46	0.36	0.30	0.24	0.18
4	0.56	0.40	0.31	0.25	0.21	0.17
5	0.50	0.36	0.28	0.23	0.18	0.15
6	0.46	0.33	0.26	0.21	0.17	0.13
7	0.43	0.30	0.24	0.19	0.16	0.13
8	0.41	0.29	0.22	0.18	0.14	0.12
9	0.38	0.27	0.21	0.17	0.14	0.11

Required:

(A) Compute the PPS sampling interval (rounded to the nearest dollar) and the maximum sample size in your sampling plan. (4 points)

(B) Suppose, after sending positive confirmations to the selected accounts receivable customers, you discovered the following misstatements in the sample:

Customer	Book Value	Audited Value
Ohlson	$150,000	$135,000
Pittman	$145,000	$100,000
DeFond	$180,950	$140,000
Michael	$115,000	$90,000
Hogan	$125,000	$60,000

Based on the sampling results, what audit conclusion can you reach about the fairness of Nvida's ending accounts receivable (rounded all dollar amounts to the nearest dollar)? (9 points)

(C) Suppose, in addition to the four misstatements you found in (B) above, you also found the following two misstatements in your sample:

Customer	Book Value	Audited Value
James	$140,000	$185,000
Williams	$125,000	$155,000

Based on the sampling results you found in (B) and (C), what statistical conclusion can you reach about Nvida's ending accounts receivable balance (rounded all dollar amounts to the nearest dollar)? (4 points)

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