materiality

Example:The auditor evaluated the financial materiality of the proposed adjustments before recommending approval.

Definition:The threshold at which financial information is of such importance as to affect decision-making.

Example:The materiality threshold for the earnings report was set at 10% of net income.

Definition:The minimum level of financial or other data to be considered significant.

Example:The auditor must determine the materiality of each account to ensure the financial statements are free from material misstatements.

Definition:The importance of a financial statement item for a user's decision-making process.

Example:In legal proceedings, the materiality of evidence is crucial to the outcome of the case.

Definition:The degree to which evidence is relevant and significant to the case under consideration.

Example:The potential materiality impact of the new regulation on company operations is currently being assessed.

Definition:The extent to which a fact, proposition, or condition affects the outcome of a decision or the implementation of a policy.