Discussion of Toward an Empirical Measure of Materiality
Kenneth Petrie Johnson · Journal of Accounting Research · 1970
The paper presents the results of interesting experiments. The analysis of the experimental data, however, seems insufficient to support the authors' conclusions that the results of the experiments are reasonable or to justify the authors' optimism that the work can be described as a step toward an understanding of the concept of materiality. The paper seems to add little to the understanding of materiality. In spite of this, the experimental techniques described by the authors appear to warrant additional development. The following discussion, representing the reaction of a practicing auditor, will focus on: (1) the analysis of the results supporting the authors' conclusion that student subjects, reacting to 'EPS only' data, behave in a symmetric, regular and predictable manner, consistent with observed response patterns, to sensory stimuli ; (2) the experimental approach leading to these results; (3) the implication of the analysis to the accounting profession.