The Difficulties And Solutions Of Judgment About Materiality In Audit

Audit standards express provision that auditors should apply the judgment ofmateriality in audit activities in our country. However, the judgment of materiality in theactual activities is in trouble.The content of this paper is to state the concept of materiality in the first, and point outthe trouble of the judgment of materiality, then analyze the cause of this trouble, and putforward the solutions to improve the condition of the judgment of materiality in the end.This paper finds that the judgment of materiality is in trouble in audit activities bycomparing the role of the judgment of materiality to the application of the judgment ofmateriality in actual audit activities. An innovative point of this paper is to indicate the mainreason why the judgment of materiality is in trouble. After analyzing the problem, this paperstates how to use the judgment of materiality in America. At last, this paper put forward thesolutions in order to make the judgment play a due role in the audit activities.