Materiality Definition

Materiality Definition

See Also:
Accounting Concepts
Accounting Principles
Audit Committee
Auditor
Compliance Audit
What Should Your Month End Reports Contain?

What is Materiality Definition?

Materiality is the amount that an omission or misstatement within the financial statements will seriously mislead people who use the financial statements of that company.

Accounting Materiality

Accounting materiality is often judged by the relative amounts and the nature of each item or transaction. Auditors use this concept everyday during the audit process. During the audit process, gather evidence of material. Then try and assess whether you should do something about that particular. Often times, address these serious issues before they become a problem. If an item is considered to be material, then either look further to address a change or disclose it within the notes of the financial statements.


Is your closing process as efficient as it could be? Access our Complete Monthly Close Checklist to use when you close your company’s or your client’s monthly books.
Materiality
Materiality

Strategic CFO company logo with slogan.

Transform your finance operations with NearSourcing™ Accounting Solutions

and see the benefits firsthand with a
FREE Consultation Session.

Share This Article
Top Articles
Categories

THE ART OF THE CFO®

Financial Leadership Workshop

Days
Hours
Min

August 7-10th, 2023

Innovative CFO logo, "Creating Success Through Financial Leadership" slogan.

Empower your business with NearSourcing™ Accounting Solutions

and take advantage of expert financial strategies at reduced costs

Related Blogs
Scroll to Top
WIKICFO® - Browse hundreds of articles
Skip to content