Quantitative and qualitative materiality

Evaluate financial errors using both their size and the context that may affect information users’ decisions.

Principle · Accounting and finance

Core concepts

• Quantity: examine amounts alongside relevant financial metrics
• Quality: examine implications such as trends or a profit-to-loss change
• Aggregation: distinguish individual errors from their combined effects

Application

Record amounts, comparison bases, qualitative factors and cumulative effects separately in review notes. Check applicable accounting standards and jurisdictional rules separately.

Limitations and jurisdiction

The source is US SEC staff guidance SAB 99 from 1999, not current Korean accounting or tax rules. No percentage is a safe harbor, and this does not replace an audit opinion.

Editorial perspectives

• Numbers: keep comparison bases and calculations reproducible.
• Context: examine qualitative implications even for small amounts.

Sources

U.S. SEC staff · Viewed 2026-10-08

Context: US SEC staff guidance, 1999

Source checked: 2026-10-08

Independent editorial summary and source link; the original text is not republished.

Related personas

Translation status

Editorial English translation of the Korean edition. No professional translation or occupational expert review has been completed. Translation does not change the source jurisdiction.

Translation prepared: 2026-10-08 · Source fingerprint: kb-5ca6bb09efc3b509

API