The concept of materiality is important to the CPA in examination of financial statements and expression of opinion upon these statements.

Required :

Discuss the following:

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

b. In what ways will consideration of materiality affect the CPA in:

(1) Developing an audit program ?

(2) Performing auditing procedures?

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

d. How will the materiality of a CPA’s exceptions to financial statements influence the type of opinion he or she expresses?