The concept of materiality is important to the CPA in the examination of financial statements and expression of opinion upon these statements.

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Discuss the following:

a. How are materiality (and immateriality) related to the proper presentation of financial statements?

b. In what ways will considerations of materiality affect the CPA in 1. Developing an audit program?

2. Performance of auditing procedures?

c. What factors and measures should the CPA consider in assessing the materiality of an exception to financial statement presentation?