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

51 Pages Posted: 28 Aug 2005

See all articles by William F. Messier, Jr.

William F. Messier, Jr.

NHH Norwegian School of Economics

Nonna Martinov-Bennie

Macquarie University - Faculty of Business and Economics; Macquarie University, Macquarie Business School

Aasmund Eilifsen

NHH Norwegian School of Economics

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 Jr, 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)

NHH Norwegian School of Economics ( email )

Helleveien 30
N-5045 Bergen
Norway
678-386-8634 (Phone)

Nonna Martinov-Bennie

Macquarie University - Faculty of Business and Economics ( email )

Sydney, New South Wales 2109
Australia

Macquarie University, Macquarie Business School ( email )

New South Wales 2109
Australia

Aasmund Eilifsen

NHH Norwegian School of Economics ( email )

Helleveien 30
N-5045 Bergen
Norway
+47 99537764 (Phone)