AASB Research Report 22 / MASB Research Report 2 Making Materiality Judgements –Malaysian Preparers and Auditors’ Perspectives

Tuesday, October 31, 2023

The AASB Research Centre published a Joint AASB and Malaysian Accounting Standards Board (MASB) research report about making materiality judgements.

The research was conducted by a team of Malaysian academics to assess the extent to which financial statement preparers and auditors understand and apply the concept of materiality, an example of regional cooperation to address a matter of international interest.

It provides the following recommendations:

• Education and training are important for preparers and auditors to make sound materiality judgements.
• As user needs and the information environment may evolve, standard-setters should continue monitoring practices to determine whether guidance about making materiality judgements needs to be reviewed and enhanced.
• Given the complexity of corporate reporting ecosystems, maintaining cross-functional collaboration within an entity is crucial for making consistent materiality judgements across different departments and improving the overall coherence and connectivity of information in the financial reports.