Using Ancient Rules to Develop New Perspectives on Materiality

• In Event: Continental Breakfast & Research and Education Forum
  In Paper Session: Table 12: Materiality

Abstract

The concept of materiality in accounting and auditing has long affected financial measurement and disclosure decisions, and influenced auditors’ judgments and decisions. However, the materiality concept is not new, nor is it restricted to accounting. To add a new perspective to the influence and application of materiality, we analyze Jewish written laws and customs that contain or reference materiality. For example, we explore how Judaism applies materiality to the areas of keeping kosher, giving charity, and providing witness testimony to show the complex nature of materiality judgments. By seeing materiality from a different point of view, we hope to help accountants and auditors apply materiality in accounting and auditing contexts.

Authors

• Alan Reinstein, Wayne State University

• Shlomo Sawilowsky, Wayne State University

• Eileen Z Taylor, North Carolina State University