SA 320 mandates that मटीरियलिटी be set before fieldwork begins, documented with rationale, and locked. CORAA's three-चरण wizard गाइड the benchmark choice, PBT, Turnover, or Equity, applies the percentage, derives Performance मटीरियलिटी and Clearly Trivial Threshold, and locks the memo. Out-of-band percentages require written rationale captured in the ऑडिट ट्रेल per SA 230.
Two paths to the same audit conclusion. One leaves traces; the other doesn't.
Three choices: प्रोfit Before Tax (typical 3-10% for profit-making entities), Turnover (0.5% for loss-making, SME, or volatile-PBT entities), or Equity (1-2% for investor-led entities). CORAA renders सभी three benchmark values from the financials and recommends the lowest for सूचीबद्ध entities.
A slider with the ICAI 3-10% band shaded. Selections inside the band require no rationale. Selections outside the band require a written justification before the wizard advances. Resulting Overall मटीरियलिटी renders immediately.
Performance मटीरियलिटी at 50-75% of OM (SA 320 A12), 75% default for low-जोखिम एंगेजमेंट, 50% for higher-जोखिम. Clearly Trivial Threshold at typically 5% of OM. Both rendered on sliders. Lock the memo when satisfied.
SA 320 suggests 3-10% of PBT as the typical band. CORAA's slider renders the band visually, selections inside don't trigger the rationale requirement; selections outside the band force a written justification.
Once locked, the मटीरियलिटी memo is पढ़ें-only. सैम्पलिंग, निष्कर्ष वर्गीकरण, and Opinion sign-off सभी consume the locked numbers. Revision requires a documented re-evaluation note explaining what changed and why.
Performance मटीरियलिटी (PM) is the buffer used for individual प्रक्रियाएँ, 50-75% of Overall मटीरियलिटी per SA 320 A12. Clearly Trivial Threshold (CTT) is the de minimis floor, typically 5% of OM. CORAA derives both with explicit ratios and lets the ऑडिटर adjust within the band.
The memo and ऑडिट ट्रेल satisfy NFRA inspection and peer समीक्षा requirements, benchmark choice documented, percentage band-justified, PM/CTT rationale captured, every revision समय-stamped per SA 230.
