Materiality has been defined in these terms (ibid, p. 126): -“The materiality of an item may depend on its size, its nature, or a combination of both. An item should be regarded as material if there is reason to believe that knowledge of it would influence the decisions of an informed investor.”
“-If the assertion is one that is material (however) he should require considerably stronger evidence. Here he should attempt to eliminate any reasonable doubt. ………..this means that for material assertions, the evidence must be either compelling – and this is possible only for existence of present physical things and for mathematical assertions – or a combination of types of evidence must be obtained” (ibid, p 126)
“-A second and more vital question has to do with the proper course of action for the auditor if he cannot obtain adequate information to remove the possibility of reasonable doubt about a material item. There seems no alternative is such a situation except to refrain from forming a judgment and rendering an opinion.” (ibid, p. 127)
-“We must be careful particulary in our acceptance of authorities and give full consideration to the possibility of bias or self-interest.” (ibid, p. 131)
