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dedicated FRC thematic reviews (2013 and 2017) — no other ISA topic received this level of scrutiny

ISA 320 — Materiality Judgment & Documentation Scorecard

12 findings regulators flag most often. Score your file in under 5 minutes.

If your materiality determination is wrong, every procedure you built on it is insufficient. The FRC ran TWO dedicated thematic reviews on this. The IAASB is actively revising ISA 320. And 50% of FTSE 350 auditors use less than the 5% benchmark you're probably using. Score your materiality judgments before a regulator does.

What's inside

3-sheet Excel workbook with 12-question scorecard covering the full materiality lifecycle (setting, refining, maintaining, and ISA 450 misstatement evaluation), finding details with regulator citations, and benchmark reference guide with industry ranges.

1. Materiality benchmark selected without documented rationale (ISA 320.10)

Regulators found auditors defaulting to 5% of PBT without documenting why that benchmark was appropriate for the specific entity, its industry, and its circumstances.

2. Performance materiality set at a fixed percentage without engagement-specific justification (ISA 320.11)

The CEAOB survey found performance materiality typically set at 50–85% of overall materiality, but regulators expect documented reasoning for the specific percentage chosen.

3. Materiality not revised when actuals differ significantly from planning-stage estimates (ISA 320.12)

Auditors set materiality based on forecast figures at planning, then never revisited it when actual results diverged materially — rendering all testing scoped to the wrong threshold.

Plus 9 more findings covering the full materiality lifecycle from setting through ISA 450 misstatement evaluation. All in a free Excel workbook.

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Based on FRC, AFM, PCAOB, and CPAB inspection findings. Built by a practicing auditor.

Based on FRC, AFM, PCAOB, and CPAB inspection reports (2022–2025). Built by a practicing auditor.

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