The concept of materiality is important to the audit of financial statements and to an auditor's expression of an opinion on the statements.

Required: 

Discuss the following:

1. How is materiality (and immateriality) related to the proper presentation of financial statements?

2. In what ways will materiality affect the auditor in:

a. Developing an audit program?

b. Performing auditing procedures?

3. What factors and measures should the auditor consider in assessing the materiality of an exception to financial statement presentation?

4. How will the materiality of an auditor's exceptions to the financial statements influence the type of opinion expressed?