Probe Audit | 10.60 - Overall materiality assessment

Published: 25/08/2025

The following describes the functionality and features included in Probe Audit Premium+.

Instructions:

10.60 - OVERALL MATERIALITY ASSESSMENT

Objective

The objective of this document is to assist you in determining the following key concepts of the Probe Audit Premium+ Methodology:
• Overall materiality for the financial statements as a whole;
• Performance materiality to determine further risk assessment procedures; and
• An amount below which misstatements will be considered clearly trivial.

Document placement

Document 10.60 can be found in the Pre-engagement planning folder in the Caseware document manager.

Document content

This document is designed to be a worksheet type document with space for a comment or further description.

This document is divided into different bookmarks in the document map to assist you in determining the different materiality values. The bookmarks included are:

Bases for materiality
Reasons for basis
Materiality

The firm author can tailor this document to the firm methodology in FIRMSETT Probe Firm Settings.

If the base applicable to the engagement is not available, a row can be added to the table to manually add the base, range of percentages and values for current and prior year.

Layout

COLUMN	INPUT REQUIRED	OUTCOME
Bases for materiality
Bases with the minimum and maximum percentage ranges	These bases have been set by the firm author, so no input is required in this column.	No impact on the engagement file.
Figures	Preliminary current year figures are reflected in the document. This can be edited, should there be a reason to do so, such as for known journal entries to a balance or if interim or budgeted figures are used to calculate materiality. The final prior year figures are reflected. These can also be edited if necessary.	No impact on the engagement file.
Selection tick box	Select an appropriate base by clicking on the tick box. More than one tick box can be selected at the same time. Selecting the tick box will automatically calculate the materiality range which reflected in the area below the table.	No impact on the engagement file.
Reasons for bases used
	Based on the tick boxes selected for the bases you should document the judgement made for each selection. Should there be other qualitative considerations these are also documented in this section of the document where prompted.	No impact on the engagement file.
Materiality figures
Overall materiality	Document the overall materiality chosen from the range displayed. Document the judgement made during this selection.	Overall materiality will be considered at the finalisation stage.
Performance materiality	Performance materiality is calculated as a percentage of overall materiality. The percentage applied is determined by the desired audit risk level as determined in 10.20 - Engagement evaluation.	Performance materiality is used in the consideration of specific materiality in 11.60 - Risk assessment at assertion level.
Clearly trivial amount	The amount below which misstatements are considered clearly trivial is calculated as either: a percentage of overall materiality; or based on a range. The method for setting the clearly trivial amount is set in FIRMSETT - Probe Firm Settings.	Users will apply the clearly trivial amount to assess whether cumulative misstatements identified in the section should be accumulated with other uncorrected misstatements identified during the audit.