Study On The Audit Materiality Judgement

The concept of audit materiality was put forward for the purpose of keeping away auditing risk and legal liability,controlling audit quality,increasing audit efficiency and reducing audit cost after sampling technology was applied widely.The global increasing accounting scandals and lawsuits against CPA demanded a higher request for the research of materiality judgments.It was necessary to research the theory and process of materiality judgment and to investigate its application in our country in order to improve the quality of CPA's materiality judgment in our country.This paper started from the basic theoretical concepts,and use it as an entry point to the system analysis conducted to determine the materiality judgment,which was regarded as a system including the auditor,the audit tasks and auditing environment,then elaborated various factors affected materiality judgment on the auditing main,auditing object and auditing enviroment.In order to understand the quo of CPA's materiality judgement,the author investigated the listed company which was drawn the non-standard auditing opinions by CPA in 2005,2006 and 2007 in our country.The statistical data indicated that the materiality threshold used most frequently was calculated according to total assets. And CPA are becoming more cautious as the market supervision was enhanced,and the liability was increased.The reasons of non-standard auditing opinion focused on several events to which CPA should pay extra attention.In the last part,the paper put forward a series of my own suggestions from the point of view of auditing technology and auditor.