Aspects of Materiality: A Continuing Education Report Essay -- Account

IntroductionThe notion of materiality provides a topic for proceed instructional discussion that many firms across the country find congenital to the development of their audit staff. Measuring and using materiality to obtain in demand(p) results during an audit becomes the responsibility of the staff member of a CPA firm. Partners and managers of a firm typically allow the staff member to use his/her judicial decision when applying this concept during the fieldwork of an audit. The overall success of an audit relies at least in part on the materiality concept therefore, staff members continuing education on the concept becomes important and necessary. This report will define the shape materiality, determine how to measure materiality, and explain the importance of the concept to the field of auditing.shaping MaterialityThe utilization of the concept of materiality in auditing dates many years. change explanations of materiality during the preliminary stages of utilizat ion prove that auditors recognized a occupy for this concept but did not have a standard for formation the term. The recognition by the Financial Accounting Standards Board (FASB) of the need for this concept prompted a decision to determine a universally recognized definition of materiality. In the book, Auditing Concepts for a Changing Environment, the FASB defines materiality as, the magnitude of an omission or misstatement of accounting information that, in light of surrounding circumstances, makes it probable that the appraisal of a reasonable person relying on the information would have been changed or influenced by the omission or misstatement (Rittenberg and Schwieger 2001, 92). In essence, the concept helps auditors determine the monetary information that... ...ff must understand the definition of the concept, determine the process for quantity materiality, and have a concrete understand of the importance of the concept when auditing a companys financial statements .Works CitedRittenberg, Larry E., and Bradley J. Schwieger. Auditing Concepts for a Changing Environment, tertiary ed. Harcourt College Publishers, 2001.Sauer, Richard C., The Erosion of the Materiality Standard in the Enforcement of the FederalSecurities Laws. Business lawyer 62, no. 2 (February 2007) 317-357.Gordeeva, Mayya, Materiality in Accounting. Economics and Management 16, 2011 41-47.Messier, William F., Jr., Nonna Martinov-Bennie and Aasmund Eilifsen. A Review andIntegration of Empirical Research on Materiality devil Decades Later. Auditing AJournal of Practice and Theory 24, no. 2 (November 2005) 153-187.