Auditor Judgements after Withdrawal of the Materiality Accounting Standard in Australia

Raul David and Indra Abeysekera
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Raul David: Discipline of Accounting and Finance, Charles Darwin University, Darwin, NT 0800, Australia
Indra Abeysekera: Discipline of Accounting and Finance, Charles Darwin University, Darwin, NT 0800, Australia

JRFM, 2021, vol. 14, issue 6, 1-20

Abstract: The concept of materiality, originating in the accounting domain and applied in the auditing domain, is an essential tool for improving audit quality. A renewed interest in materiality research emerged in Australia after submitting Exposure Draft no. 243 by the Australian Accounting Standards Board (AASB) proposing the withdrawal of AASB 1031 Materiality, which became effective in July 2015. The purpose of this paper is to review the audit literature to examine how the materiality concept is located in the regulatory framework, the standards and guidance that support the application of this concept, and research undertaken using different research methods. As our review reveals significant gaps in recent research on the subject, gaps need to be addressed. The paper concludes by proposing research propositions that fit into the audit triangle for materiality research developed in this paper.

Keywords: AASB 101; AASB 108; AASB 1031; errors; materiality; material misstatements; omissions (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2021
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