IntroductionThe concept of materiality is a continuing education discussion topic that many firms across the country find essential to the development of their audit staff . Measuring and using materiality to achieve the desired results in an audit becomes the responsibility of the CPA firm staff member. A firm's partners and principals generally allow the staff member to use their judgment when applying this concept when working in the field of an audit. The overall success of an audit relies at least in part on the concept of materiality; therefore, ongoing training of staff members on this concept becomes important and necessary. This report will define the term materiality, determine how to measure materiality, and explain the importance of the concept in the field of auditing. Definition of materiality The use of the concept of materiality in auditing dates back many years. The different definitions of materiality during the preliminary stages of use demonstrate that auditors recognized the need for this concept but did not have a standard for defining the term. The Financial Accounting Standards Board's (FASB) recognition of the need for this concept prompted a decision to determine a universally accepted definition of materiality. In Auditing Concepts for a Changing Environment, the FASB defines materiality as "the extent of an omission or misstatement in accounting information that, in light of surrounding circumstances, makes it likely that the judgment of a reasonable person relying on the information "would have been modified or influenced by the omission or inaccuracy" (Rittenberg and Schwieger 2001, 92). Essentially, the concept helps auditors determine financial information that needs to understand the definition of the concept, determine the process of measuring materiality, and have a concrete understanding of financial information. importance of the concept when auditing a company's financial statements. Works Cited Rittenberg, Larry E. and Bradley J. Schwieger. Auditing Concepts for a Changing Environment, 3rd ed. Harcourt College Publishers, 2001. Sauer, Richard C., “The Erosion of the Materiality Standard in the Enforcement of Federal Securities Laws.” Business Lawyer 62, no. 2 (February 2007): 317-357. Gordeeva, Mayya, “Materiality in Accounting”. Economy and Management 16, 2011: 41-47. Messier, William F., Jr., Nonna Martinov-Bennie and Aasmund Eilifsen. “A review and integration of empirical research on materiality: two decades later.” » Audit: AJournal of Practice and Theory 24, no. 2 (November 2005): 153-187.