SEC Issues SAB on Materiality
- Topics:
- Audits
- Tags:
- Accounting,
- Auditing,
- SEC
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Overview: The Securities and Exchange Commission (SEC) staff has released Staff Accounting Bulletin (SAB) No. 99, which addresses the application of materiality thresholds to the preparation and audit of financial statements filed with the SEC. The SAB states that it does not create new standards or definitions for materiality, but reaffirms the concepts of materiality expressed in the accounting and auditing literature as well as in long-standing case law. Indeed, the SAB draws heavily on the existing auditing and accounting literature on materiality. Also it makes some important statements, including the following: Registrants and auditors may not rely solely on numerical thresholds to determine what is material, the materiality of misstatements discovered in the financial reporting and auditing processes must be considered both individually and in the aggregate, Intentional misstatements that are not material are inappropriate and may be unlawful.
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Format: HTML | Date: Oct 1999 | Pages: 1
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