Setting Materiality
Procedure
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From the Document Manager, expand the Planning and Materiality folders and open 420 Materiality (Core) document.
- Balances will automatically populate the materiality document using calculations based on the default mapping numbers within the master template. Note: To change the default calculations to different map numbers, different groupings or specific accounts, select Enable Editing from the CaseView View menu. Double-click each cell to edit and make the appropriate changes to the calculation field. For details on CaseView formulas refer to the CaseView help topics Cells and Cell Functions.
- Define the preliminary overall materiality for the entity:
- Enter the applicable benchmark
- Lock the preliminary materiality by clicking icon.
- Enter the preliminary materiality which will appear at the top of all documents.
- Enter the preliminary performance materiality, which will appear at the top of all documents.
- Enter the specific materiality, which will appear on the individual related items in the Financial Statement Area Worksheet.
- Enter the amount below which misstatements would be clearly trivial.
- Sign off the assessment of preliminary materiality.
Results
Preliminary materiality is updated in all related documents. Later in the engagement, enter and sign-off on the final overall materiality and performance materiality.