51 Pages Posted: 28 Aug 2005
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: 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