Factors Affecting Materiality in Auditing: Evidence form Jordan

Abstract

Materiality is a vague concept in both accounting and audit. In determining materiality level auditors rely on their professional judgement and experience. The purposes of this paper are to identify the determinants of materiality level and to construct a model. Those help auditors in their tasks. To achieve these objectives, a questionnaire includes thirty three potential determinants was administered to a sample of Jordanian auditors. Mean, standard deviation, percentages and stepwise regression were employed to analyze the date. The results highlighted eighteen factors that have impact on materiality level. The model constructed by means of stepwise regression minimized these factors to eight only. They contain 94% of the information provided by all factors.