Reviewed by: Date: Materiality Worksheet for Audit Planning Purposes Legal Company Name Client: Balance Sheet Date: Instructions: 1. this form should be completed for all audit engagements. The purpose of this form is to determine and document the materiality amount that will be considered appropriate for audit planning purposes. 2. Use amounts from the financial statements to be audited or the trial balance from which those financial statements will be prepared. 3. If current amounts are not available or if significant audit adjustments to client- prepared accounting data are anticipated, use historical averages based on the past wo or three years, based on audited IAS financial statements. Show these calculations on a separate attached worksheet. Based on your professional judgment, determine a planning materiality amount using the following table as a guideline. Round the calculated amount to two significant digits (see example below table). Base Amount-larger of total assets or revenue. Planning Materiality is If Base Amount is: the sum of the following: (1) (2) (3) (5) Over But Not Over Amount + % Of amount over: (tug) (tug) (tug) (tug) 10 million 5.0% 0 10 million 40 million 500 thousand 3.0% 10 million 40 million 100 million 1.2 million 2.0% 40 million 100 million 500 million 2 million 1.0% 100 million 500 million 1 billion 5 million 0.8% 500 million I billion 8 million 0.6% 1 billion Example: If the base amount is 12.4 million, then the planning materiality amount is: 500,000+ 0.03 X 2,400,000) = 572,000. Round to two significant digits: 570,000 Calculations 514.4 BILLION 1. Planning Materiality. Total Revenue (see instructions) - 514,400,000,000 Total Assets (see instructions) = -211, 295,000,000 V21 9,295 BFLISON Base Amount (larger of total revenue or total assets) - 515, ude, 000,000 PLANNING MATERIALITY CALCULATION: Amount from Column 3 of Table % from Column 4 of Table Amount in excess of Column 1 of Table) Planning Materiality + 2. Tolerable Misstatement. Tolerable misstatement is used in computing sample sizes and in making other decisions about the scope of audit work. This is a matter of auditor's judgment, but generally the tolerable misstatement can be computed as: X Factor = Planning Materiality Amount Tolerable Misstatement X 50 510329 este changer le previous your 3.7% US San 345 21.046 21.07 2129 and w e expensere 6,670 11.95 319,95 50,200 Www 999 11,61 the channel temble we De e p ing wh e n we for sale at