Misstatements or omissions in the financial statements are considered material if they could influence the economic decisions of users based on the financial statements. This research presents an empirical research, which provides evidence that a relevant expectation gap regarding materiality of misstatements exists between users of the financial statements and auditors. This gap can mainly be explained by lack of communication. According to the respondents, the expectation gap can be narrowed by introducing a uniform guideline, which incorporates quantitative rules, and especially by disclosing the materiality threshold used by the auditor in the audit report.

accountability, auditing, financial statements
Erasmus School of Economics

de Rooij, D. (2009). Materiality of misstatements from the perspective of the users of the financial statements - Narrowing the expectation gap between users and auditors. Retrieved from http://hdl.handle.net/1765/15576