$11-7$

As a staff member of Norton, price, and Cummings, CPA's, you have been asked to prepare a report on $$materiality$$ that will be circulated to all staff as part of the firm$$s continuing education program. It has been suggested that the report should cover the definition of materiality, why the concept is important to auditing, and how to measure it$.$ You should also discuss any other aspects of materiality you find important. Write the report as requested.

$11-9$

You are a partner in a regional CPA firm, Swearingen & Gray, with $14$ offices covering the eastern United States. Your firm routinely publishes and distributes reports to its clients that cover current accounting and financial reporting topics. You have been asked by James Swearingen, the managing partner of your firm, to prepare such a report on the use of non$-$GAAP measurements in annual reports, an issue about which the SEC has recently voiced serious concerns. In your report Mr$.$ Swearingen has asked you to cover these topics and others you consider important.

$$ What are some of the more commonly used non$-$GAAP measurements?

$$ Why is the SEC concerned about the use of such measurements?

Do the necessary research for this project and write the report for Mr$.$ Swearingen.