Need Help With Auditing Terms!!! What Does Immaterial Mean?

Question

Several examples of "immaterial" used in different contexts:

1.immaterial transactions

2.the number of shares she purchased are immaterial to their net worth,....

What does "immaterial" mean here? small in value or what??

Answer 1

not necessarily small in value.  it is immaterial as long as it doesn't affect the fair presentation of the financial statements.

Answer 2

You can look at it as small in value but probably a better way to look at it is that it has little to no influence or bearing on the current situation.  In other words it really doesn't matter.