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PCAOB AS 2105: Consideration of Materiality

PCAOB AS 2105: Consideration of Materiality

This PCAOB Auditing Standard 2105: Consideration of Materiality in Planning and Performing an Audit establishes requirements regarding the auditor's consideration of materiality in planning and performing an audit.


In interpreting the federal securities laws, the U.S. Supreme Court has held that a fact is material if there is "a substantial likelihood that the . . . fact would have been viewed by the reasonable investor as having significantly altered the 'total mix' of information made available." As the Supreme Court has noted, determinations of materiality require "delicate assessments of the inferences a 'reasonable shareholder' would draw from a given set of facts and the significance of those inferences to him.


This timely, two hour morning CPE training event is designed for the CPA firm staff members who will be working on PCAOB regulated audits. The attendees will learn how this PCAOB Auditing Standard should be reflected in the auditing workpapers.


Each attendee will receive 2 CPE Hours (YB). A certificate of completion will be provided.

  • Details on Event Presentation

    Being offered twice a quarter on Tuesdays at 1:00 p.m. to 3:00 p.m. Central Time.

    We can schedule private events on your timetable for two or more attendees.

  • CPE Event Highlights

    Based on the relevant professional literature and PCAOB Auditing Standards:

    • Considering materiality is a complex process,

    • Requires substantial professional judgment,

    • Setting materiality requires both quantitative and qualitative considerations,

    • Audit planning focuses audit procedures on detecting quantitatively material misstatements,

    • Understanding that misstatements require the auditor to look both quantitatively and qualitatively to judge the effect on the financial statement opinion.

  • Learning Objectives

    Attendees will:

    • Improve their efficiency and effectiveness

    • Understanding the audit materiality planning requirements as defined by the PCAOB

    • Understanding the audit progression requirements as defined by the PCAOB concerning materiality

  • Key Issues on the Agenda

    Section 1 - Introductions and Administrative Items
    Section 2 - Issues within Inspection Reports
    Section 3 - Consideration of Materiality in Planning and Performing an Audit
    Section 4 - Determining Materiality in the Audit of Financial Statements
    Section 5 - Consideration of Materiality

  • NASBA Program Disclosure

    Program Level of Understanding: Basic
    Prerequisites: None
    Advance Preparation: None
    Delivery Format: Group Internet Based
    NASBA Field(s) of Study: Auditing
    CPE Credits: 2, based on 50 minutes of instruction per hour

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