Thus, evidence of fraud does not in and of itself render financial statements materially misleading. The nature and dollar amount of the fraud must also be taken into consideration, all within the context of the totality of publicly available information about the firm.
Works Cited:
Braun, K. (2001). The Disposition of Audit-Detected Misstatements: An Examination of Risk and Reward Factors and Aggregation Effects. Contemporary Accounting Research. Vol 18, No. 1 (Spring 2001), pp.71-99.
Shunglu, V.K. (1998). Role of the Auditor in Promoting Good Governance. International Journal of Government Accounting. Retrieved September 7, 2009 from http://findarticles.com/p/articles/mi_qa3662/is_199804/ai_n8794931/
(2004). Audit Materiality. Oxford University. Retrieved September 7, 2009 from http://eprints.ouls.ox.ac.uk/archive/00001060/01/AUDIT_MATERIALITY.pdf
Sauer, R. (2007). The SEC's Materiality Standard Becoming Overly Vague and Excessively Onerous. Business Lawyer. Vol. 62, No. 2, pp 317-357.
Malkiel, Burton G. (2003). CEPS Working Paper No. 91: The Efficient Market Hypothesis and its Critics. Princeton University. Retrieved September 7, 2009 from http://www.princeton.edu/~ceps/workingpapers/91malkiel.pdf
Notes
Braun 71
Sauer 317
Sauer 317
Sauer 317
Sauer 317
Bauer 71
Malkiel 3
Shunglu 1
