Kennedy Web 2012Cover & Rossiter Audit Director, Peter Kennedy, CPA was quoted in a recent New York Times article regarding the potential concerns that could stem from the Financial Accounting Standards Board’s (FASB) newly announced proposal, which ultimately changes the definition of materiality as it pertains to corporate financial disclosure.

Under this proposal, materiality will become a strictly legal concept, and financial information would only be considered material if an impartial person viewed it as significantly altering the compilation of facts about a company.

Mr. Kennedy stated, “Leaving materiality as a ‘legal concept’ is a significant flaw, which will appear to subordinate the judgment of the preparer and auditor to any attorney, regardless of their capacity or area of expertise.”

Read the article published by the New York Times in its entirety here.