Concept of Materiality and Its Application to the Requirements of the Federal Managers' Financial Integrity Act

摘要

This thesis provides a review of the process of evaluating internal control systems for the Federal Managers' Financial Integrity Act and the application of the concept of materiality to that process. Topics considered include: internal control in the Federal Government; internal control evaluation in the Federal Government; the concept of materiality in the private sector and the Federal Government; and guidelines for determining material weaknesses in internal control systems. The conclusion was reached that with additional training in the area of materiality, and supported with a material weakness checklist, managers in the Federal Government can better fulfill their requirements for internal control evaluation. The research consisted primarily of a detailed search and evaluation of the literature in the area of internal control evaluation in the Federal Government and the concept of materiality both in the private sector and the Federal Government. Additional keywords: fraud, waste and abuse; accounting; auditing. (Author)