ASB seeks alignment of materiality definitions

The AICPA Auditing Standards Board (ASB) is proposing changes to the definition of materiality in its standards for auditors and attestation engagements to eliminate inconsistencies with the definition used by other U.S. regulatory bodies.

Currently, the ASB’s description of the concept of materiality is consistent with the definition used by the International Accounting Standards Board and the International Auditing and Assurance Standards Board.

The ASB’s proposed amendments are intended to align the materiality concepts in the AICPA Professional Standards with the definition of materiality used by the U.S. judicial system, the PCAOB, the SEC, and FASB.

Exposure drafts were issued recently for a proposed Statement on Auditing Standards and a proposed Statement on Standards for Attestation Engagements, both titled Amendments to the Description of the Concept of Materiality.

Despite the minimal impact on practice, the ASB believes it is in the public interest to eliminate inconsistencies between the definition used in the AICPA Professional Standards and the definition used by other U.S. bodies.

Comments are due Aug. 5 by email to Sherry Hazel at Sherry.Hazel@aicpa-cima.com.