... separate measures of disaggregation of smaller line items versus larger, obviously material, line items, we provide evidence that one of the avenues through which disaggregation may increase auditor effort is through changes in auditors' assessments of materiality for smaller line items, especially when...

...Marcus M. Doxey; Richard C Hatfield; Jordan A. Rippy; R. Kyle Peel SUMMARY We broaden our understanding of investor materiality, finding it to be asymmetrical for good and bad news. Motivated by legal and standards-based materiality definitions, we consider both participants' stated materiality...

...F. Todd DeZoort; Travis P. Holt; Jonathan D. Stanley SUMMARY Materiality remains a challenging concept for auditors to implement in practice. The challenges underlying auditor materiality assessments are compounded by the fact that courts, regulation, and professional standards emphasize...

...G. Bradley Bennett; Richard C. Hatfield SUMMARY We conduct an experiment to investigate whether deadline pressure influences auditors' judgments regarding the materiality of identified errors (internal control deficiencies), as well as the sufficiency of audit evidence to test clients' remediation...

... Andersen Center for Financial Reporting. Editor's note: Accepted by David C. Hay. August 2013 February 2015 2015 audit committees book-or-waive decisions error correction materiality When auditors detect non-trivial misstatements, Statement on Auditing Standards...

... and low levels of assurance for large income statement accounts, such as revenue, even when the significant-difference threshold exceeds overall materiality. Such procedures can provide strong evidence that financial statements are free of massive fraud or unintentional misstatement. Further, the moderate...

...Aasmund Eilifsen; William F. Messier, Jr. SUMMARY This paper examines the materiality guidance for eight of the largest U.S. public accounting firms. Knowledge of how materiality guidance is integrated into a firm's methodology is important for accounting and auditing researchers as well...

... audit firm in Germany. We extend the scope of prior studies by incorporating client-specific planning materiality in our design, enabling us to analyze the relative magnitude of adjustments. Our findings show that audit adjustments vary systematically, as proposed by the audit risk model. Specifically...

... or imprecision that is many times greater than materiality. Importantly, changes in the estimates often impact net income; consequently, the extreme estimation uncertainty also resides in measures such as earnings per share. We do not question the value audits provide to the marketplace, the importance of fair...

... range would have allowed variation of six times the firm's quantitative materiality threshold. ⁷ Differences of opinion on what should be the nature, timing, and extent of audit procedures when addressing high-uncertainty FVA estimates are understandable because inherent uncertainty...