To determine the engagement materiality, open the Audit tab and click the Materiality button.
The right section of the active window displays the most commonly used Materiality indicators. You can apply them in the left section fields by right-clicking on an indicator and selecting Use selected value. If you don't want to apply ready-to-use material indicators, you can enter your own values.
To be able to use the materiality indicators, you must have imported the Statement of financial position and Income statement.
The tab shows all risks that have been identified as affecting materiality.
The section gives further information about the selected material indicator.
- The chosen materiality is based on - enter as short text what the selected materiality is based on
- % of base value - determine the percentage of base value
- Overall materiality - determine the overall materiality value
- Previous period materiality - enter the materiality threshold of previous period, if any
- Non-material misstatements - determine the threshold of non-material misstatements
Choosing materiality grounds
In this tab, auditors are expected to give more detailed reasons for their choice of materiality threshold.
Here you can enter all significant disclosures.
- % from overall materiality - the percentage of the overall materiality that will be the performance materiality
- Performance materiality - automatically calculated on the basis of overall materiality
Performance materiality = "Overall materiality" x "% from overall materiality"