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Materiality in Automatic Documents

During an engagement, it is important to refer to your organization’s materiality guidelines to assess the risk of misstatement. To make these guidelines more accessible, we have included them in the header of the following documents:

  • Analytical Review (excluding ratio analysis format)
  • Leadsheet/Grouping
  • Trial Balance

The display includes each materiality type with its associated preliminary and final materiality value.

If you are using CaseWare Audit, you can set each value from the Materiality document.

Note: Each materiality type requires both a preliminary and final value (excluding Trivial materiality) to display.

Creating a materiality document in CaseView

If you are not using CaseWare Audit, you can create your own materiality document using CaseView.

Start by creating a new CaseView document in Working Papers from Document | New | CaseView. In the CaseView document, you must designate the name of each materiality type, and the value of each type’s preliminary and final materiality. These values are designated through a cell calculation that writes the entered value to the CaseView database.

When designating the name of each materiality type, you can use the default name (Overall, Performance, Adjusted performance), or you can customize the name if your materiality guidelines contain organization specific terminology. The name you enter into the cell changes the name of the materiality type across the engagement.

To name a materiality type from a cell:

  1. From the CaseView Ribbon, click Insert | Cell. Enter a Cell Number and click OK.
  2. In the New Cell dialog, set the Cell Type to Alphanumeric. Under the Calculation Properties group, check Input Cell and External Data Access.
  3. Click the External Data tab.
  4. In the Data Type: drop-down menu, select Global Cell Data (Long ID).
  5. In the Global Cell Data group, complete the Identifier field with the value required:

    Materiality type Value
    Overall

    Identifier: FREEZE_OVRALL

    Performance

    Identifier: FREEZE_PERF

    Adjusted performance

    Identifier: FREEZE_ADJ

    Click OK.

An editable cell displays in your materiality document. In Form Mode, double-click the cell to modify the text. Enter the default or customized name of the materiality type. Repeat the procedure for each materiality type.

You can now designate the preliminary and final materiality values for each materiality type. These values are specific to your organization.

To designate a preliminary or final materiality value from a cell:

  1. From the CaseView Ribbon, click Insert | Cell. Enter a Cell Number and click OK.
  2. In the New Cell dialog, set the Cell Type to Numeric. Under the Calculation Properties group, check Input Cell and External Data Access.
  3. Click the External Data tab.
  4. In the Data Type: drop-down menu, select Form Cell Data (Long ID).
  5. In the Form Cell Data group, complete the Group, Form, and Identifier fields with the values required:

    Materiality type Value (Preliminary) Value (Final)
    Overall

    Group: WPG

    Form: MATERIAL

    Identifier: VALUE

    Group: WPG

    Form: MATERIAL

    Identifier: FINAL

    Performance

    Group: WPG

    Form: PMATERIAL

    Identifier: VALUE

    Group: WPG

    Form: PMATERIAL

    Identifier: FINAL

    Adjusted performance
    (Requires Audit 20.00 or later)

    Group: FSA

    Form: Group name (e.g. GRP1)

    Identifier: Group number (e.g. 1.A)

    Group: FSA

    Form: Group name (e.g. GRP1)

    Identifier: Group number (e.g. 1.A)

    Trivial

    Group: WPG

    Form: TRIVIAL

    Identifier: VALUE

    -

    Note: Adjusted performance is specific to the automatic document (Leadsheet/Grouping documents only). Each leadsheet can have a unique adjusted performance value.

    Click OK.

An editable cell displays in your materiality document. In Form Mode, double-click the cell to modify the text. Enter the preliminary or final materiality value for the materiality type. Repeat the procedure for each preliminary and final materiality value.

When complete, you can view your materiality values in the header of applicable automatic documents.