[The following paragraph became effective February 6, 2006, and was amended as a result of the adoption of Auditing Standard No. 5, effective for audits of fiscal years ending on or after November 15, 2007. See PCAOB Release 2007-005A.

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23.       The concept of materiality, as discussed in paragraphs 22 and 23 of Auditing Standard No. 5, underlies the application of the general and fieldwork standards in an engagement to report on whether a previously reported material weakness continues to exist.  Therefore, the auditor uses materiality at the financial-statement level, rather than at the individual account-balance level, in evaluating whether a material weakness exists.  The auditor should assess materiality as of the date that management asserts that the previously reported material weakness no longer exists.