The concept of the materiality in the financial statement auditing

The financial auditors are required to provide the assurance for the public whether the financial statements are prepared, in all material respects, in accordance with the applicable financial reporting framework. The International Federation of Accountants, the International Auditing and Assurance Standards Board formulated general guidelines and principles of audit materiality assessments and provided that in auditing standards (IAA 320 and IAA 450). Financial auditors have independently to determine the materiality threshold and make professional decision about information significance according to International Auditing Standards. The aim of the article is to analyze tools of the proper consideration of the concept of materiality in financial statement auditing and provide interpretations of the materiality concept formation in the scientific resources and determine the factors of materiality. Based on the methods of information systematization and comparison paper analyzes the evolution of the materiality concept in scientific resources, discloses the role of Lithuanian scientists developing the conception of materiality and describes the matter of the materiality process. The conception of materiality includes quantitative and qualitative factors. Materiality, in general, can be understood as highly important information. The auditors evaluate significance and importance of the information making assumptions about the financial interests of consumer’s needs and attitudes. The article indicates the sequence of the materiality determination activities, identifies quantitative and qualitative materiality factors, provides the working materiality threshold