The PCAOB, for example, has stated that "the auditor's responsibility with respect to detection of a material misstatement
caused by fraud is an important focus of the Board .
In rejecting this argument, Scalia quoted a concurring opinion in a Fifth Circuit decision, stating that, with the type of tax shelter at issue, "the basis misstatement
and the transaction's lack of economic substance are inextricably intertwined, so attributing the tax underpayment only to the artificiality of the transaction and not to the basis overvaluation is making a false distinction" (slip op.
Speaking at the US Institute of Peace, Clinton said Washington has adopted a new approach through which it wants to clear all misstatements
surrounding the aid bill.
Materiality in Planning and Performing an Audit and Evaluation of Misstatements
Identified During Audit: Supersede AU Section 312, Audit Risk and Materiality in Planning an Audit
was below the five percent quantitative
An auditor must understand five components of internal control to adequately assess an organization's risk of material misstatement
of the financial statements.
The SEC specifically noted that auditors may fail to appropriately assess the risk of misstatement
when balances do not change from year to year:
The inherent risk (IR) represents a misstatement
that could be material, individually or aggregated, when there are no related controls.
First, the understanding aids in the assessment of the risks of material misstatement
Materiality uncertainty affects the auditor's evidence evaluation because it affects the updated probability of material misstatement
(for a fixed earnings report and audit evidence).
Seattle Bank had accused Bank of America of making misstatements
and omitting information about the quality of mortgages underpinning the securities.
In challenging Basic, the Halliburton defense is asserting that this theory and the related presumption that all plaintiffs relied on the company's alleged material misstatements
should not stand.