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PROCESS POINTS: The Trouble With Determining Fraud Materiality

September 25, 2009

by Christopher T. McKittrick

in

What does materiality mean when it comes to fraud? Accountants often use a "5 percent rule" to determine materiality yet other statutes and regulations have almost zero tolerance when it comes to determining what is material. How should companies determine what is best for them?


"Zero Tolerance" vs. "Materiality" | Source: The Big Fat Finance Blog.

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No votes yet

To me, a fraud is a fraud.

On March 27th, 2012 Incredible Discoveries (not verified) said:

To me, a fraud is a fraud. It is an act of dishonesty and should be dealt with accordingly. There are no room for dishonesty in a company.

It is really not easy to

On March 25th, 2012 a bfmag.com reader (not verified) said:

It is really not easy to prove fraud. Even from credit card frauds to insurance frauds.
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