Materiality is the amount that an omission or misstatement within the financial statements will seriously mislead people who use the financial statements of that company.
Materiality accounting is often judged by the relative amounts and the nature of each item or transaction. Materiality is a concept that is used everyday during the audit process. During the audit process materiality evidence is often gathered to try and assess whether something should be done about that particular. Often times serious issues can be addressed before they become a problem. If an item is considered to be material then it should either be looked further into to address a change or it should be disclosed within the notes of the financial statements.