Define materiality
Content in this topic requires Caseware Audit.
Use the 420 Materiality document to define materiality for the audit. You can define overall materiality, qualitative disclosures, performance materiality and the trivial misstatement threshold.
To complete the materiality document:
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From the Documents page, open 420 Materiality.
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In the Principal Users of the Financial Statements section, enter the principal users and any factors to consider. Select Add row to add more principal users to the document.
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In the Overall Materiality section, enter one or more factors to determine materiality. You can add two additional basis types:
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Financial materiality basis: Select a group from the trial balance and enter a benchmark percentage.
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Other basis: Enter a custom basis description and amount, and enter a benchmark percentage.
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In the Qualitative Disclosures section, identify any possible misstatements that could be material to the intended financial statement users.
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In the Performance Materiality section, enter a benchmark percentage to be applied to overall planning materiality.
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In the Trivial misstatement section, enter a maximum amount for trivial misstatements.
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In the Materiality for specific circumstances section, enter one or more materiality factors for specific circumstances.
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In the Performance materiality for specific circumstances section, enter one or more materiality factors for specific circumstances.
