Materiality is a fundamental concept in the risk-based approach to auditing financial statements. 1. Describe the concept of materiality in auditing and how it can be measured quantitively and qualitatively. 2. Identify how materiality can be used to form an overall audit strategy within the risk- based approach to auditing. 3. Criticise the risk-based approach to auditing and identify how its shortcomings can be minimised.