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Materiality calculator
Overall materiality, performance materiality and the clearly trivial threshold, with a reasoning paragraph you can paste into the file.
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- Client:
- Period:
- Prepared by:
- Reviewed by:
- Date:
Results
Enter the benchmark amount to see the results.
- Overall materiality for the financial statements as a whole
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- Performance materiality
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- Clearly trivial threshold
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Revise if new information arises during the audit (NV COS 320.12).
Reasoning for the file (NV COS 320.14)
Copy it into your file and adapt it. NV COS 320.14 asks you to document the amounts and the factors considered.
Formula
Overall materiality = benchmark amount × percentage. Performance materiality = overall × performance %. Clearly trivial = overall × clearly trivial %.
Structured according to NV COS 320, 450 and 530. Indicative only: your firm's audit methodology takes precedence and professional judgement remains with the auditor.
Sources
- NV COS 320.10–14 and A4–A14 (overall, specific and performance materiality, revision, documentation) and NV COS 450.5 and A2 (clearly trivial, no set percentage), in the NBA Handleiding Regelgeving Accountancy
- ISA 320 and 450, the international standards NV COS 320 and 450 are based on (IAASB Handbook)
- Practice ranges: FRC, Audit Quality Thematic Review: Materiality (2017), section 3.2
- Practice ranges: CEAOB, Materiality in the context of an audit (2022), sections 3.1.4 and 3.3
- Practice ranges: AFM, Materialiteit in de controle van de jaarrekening (2021)
- BADO art. 2: approval tolerance for Dutch municipalities, provinces and water boards