Materiality with its working shown.
Choose a benchmark and a percentage. ClairAudit derives performance materiality and the clearly-trivial threshold, keeps the calculation as a numbered version and copies the active figures onto the engagement.
ISA 320 · ISA 450
One benchmark, three thresholds.
The percentage is the engagement team’s judgement. Any value above zero and up to 100 is accepted, and ClairAudit does not suggest a range. The derived thresholds are fixed ratios, so they read the same on every file.
| Threshold | Basis | Amount |
|---|---|---|
| Benchmark | Revenue | 48,200,000 |
| Overall materiality | 1.0% of benchmark | 482,000 |
| Performance materiality | 75% of overall | 361,500 |
| Clearly trivial | 5% of overall | 24,100 |
Reassessments are numbered, not overwritten.
When materiality is revisited during the audit, the new calculation becomes the next version and names the one it replaces.
- Version
Numbered per engagement
Each calculation records its benchmark, percentage, derived thresholds and who computed it.
- Supersede
Revisions link to what they replace
A superseded version points to its replacement, so the sequence of reassessments stays readable.
- Active
The active version cannot be deleted
Its figures are copied onto the engagement record.
- History
Prior years by client
Materiality from earlier engagements for the same client can be read beside the current calculation.
Bring an engagement. We will walk the file with you.
A demo covers your audit methodology, the standards you report under, and how agents, citations and review gates would fit your team. Pricing is discussed on the call.