Not Acceptable Exclusive reliance on quantitative benchmarks. Registrants and the auditors of financial statements should not rely exclusively on quantitative benchmarks to determine whether items are material to the financial statements. Intentional errors based on materiality. Intentional errors are not acceptable, regardless of materiality. They then try to excuse that fib by arguing that the effect on the bottom line is too small to matter.
Intentional misstatements violate federal law.
Intentional misstatements are not acceptable under federal law. Misstatements created with the intent of managing earnings are not acceptable, regardless of materiality. Registrants and their auditors should consider each misstatement and its materiality separately and in the aggregate. The aggregate effect of multiple misstatements cannot be justified by offsetting material misstatements with immaterial ones. Quantitatively small misstatements.