Download this Paper Open PDF in Browser

A Review and Integration of Empirical Research on Materiality: Two Decades Later

51 Pages Posted: 28 Aug 2005  

William F. Messier Jr.

University of Nevada, Las Vegas - Department of Accounting; Norwegian School of Economics (NHH) - Department of Accounting, Auditing and Law

Nonna Martinov-Bennie

Macquarie University - Department of Accounting and Finance

Aasmund Eilifsen

Norwegian School of Economics (NHH) - Department of Accounting, Auditing, and Law

Abstract

There has been a renewed interest in the concept of materiality motivated by concerns at the Securities and Exchange Commission, the Sarbanes-Oxley Act, and the Auditing Standards Board and International Auditing and Assurance Standards Board issuance of proposed standards on materiality. This paper: (1) reviews and integrates the empirical research on materiality since 1982, and (2) suggests some implications of this research for audit practice and research. The review indicates that while many issues related to materiality have been addressed by prior research, a number of new and important areas are in need of further examination.

Keywords: Materiality, materiality bases, quantitative and qualitative materiality factors

JEL Classification: M49, G38, K22

Suggested Citation

Messier, William F. and Martinov-Bennie, Nonna and Eilifsen, Aasmund, A Review and Integration of Empirical Research on Materiality: Two Decades Later. Auditing: A Journal of Practice & Theory, November 2005. Available at SSRN: https://ssrn.com/abstract=786688

William F. Messier Jr. (Contact Author)

University of Nevada, Las Vegas - Department of Accounting ( email )

Lee Business School
4505 Maryland Parkway
Las Vegas, NV 89154-6003
United States
702-895-1576 (Phone)
702-895-4306 (Fax)

Norwegian School of Economics (NHH) - Department of Accounting, Auditing and Law ( email )

Helleveien 30
N-5045 Bergen
Norway

Nonna Martinov-Bennie

Macquarie University - Department of Accounting and Finance ( email )

Sydney, New South Wales 2109
Australia

Aasmund Eilifsen

Norwegian School of Economics (NHH) - Department of Accounting, Auditing, and Law ( email )

Helleveien 30
N-5045 Bergen
Norway
+47 55 95 93 23 (Phone)
+47 55 95 93 20 (Fax)

Paper statistics

Downloads
1,473
Rank
9,532
Abstract Views
5,493