Intermediate Audit Staff Training: Determining Audit Materiality
Author: Robert K Minniti
| CPE Credit: |
2 hours for CPAs |
This intermediate level course provides audit professionals with a structured, practical framework for determining and applying materiality in financial statement audits. Participants will learn how materiality influences audit planning, risk assessment, substantive procedures, and the evaluation of misstatements in accordance with U.S. GAAS, PCAOB standards, and relevant international guidance.
Using real world examples and judgment driven scenarios, the course explores how to calculate planning materiality, set performance materiality, identify clearly trivial thresholds, and reassess materiality as audit evidence is obtained. Attendees will also learn how qualitative factors—such as fraud indicators, regulatory considerations, and user expectations—affect materiality decisions beyond numeric thresholds.
Publication Date: May 2026
Designed For
This course is designed for audit professionals responsible for planning and evaluating audit evidence
Topics Covered
- Overview of materiality concepts under U.S. GAAS, PCAOB, and international standards
- Determining planning materiality and selecting appropriate benchmarks
- Setting performance materiality and clearly trivial thresholds
- Evaluating misstatements: quantitative and qualitative considerations
- Revising materiality during the audit
- Impact of materiality on substantive procedures and audit conclusions
- Fraud considerations and regulatory expectations related to materiality
- Documentation expectations and common materiality‑related pitfalls
Learning Objectives
- Explain the concept of materiality and its significance in audit planning and reporting
- Calculate planning and performance materiality using common benchmarks and professional judgment
- Apply both quantitative and qualitative factors in evaluating audit findings
- Identify the impact of identified misstatements—individually and in aggregate—on the audit opinion
- Determine when to revise materiality levels during the audit based on new information
- Identify materiality decisions in accordance with relevant auditing standards and best practices
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Auditing (2 hours)
Program Prerequisites
Basic understanding of auditing concepts
Advance Preparation
None
