Setting overall materiality, performance materiality, and the threshold for clearly trivial misstatements.
To apply the concept of materiality appropriately in planning and performing the audit.
SA 320 sits in the Planning phase of the audit. The Standards on Auditing are issued by the ICAI Auditing and Assurance Standards Board (AASB) and deemed to be prescribed by the Central Government under Section 143(10) of the Companies Act 2013. Compliance with SAs is mandatory for every audit conducted by a Chartered Accountant in India.
For authoritative text, refer to the ICAI AASB Compendium of Standards on Auditing at icai.org.
Editable, letterhead-ready formats that put SA 320 into practice — built from the ICAI working-paper set, free to download.
And when you want SA 320 executed and documented automatically — your first audit on CORAA is free.
SA 320 — Materiality in Planning and Performing an Audit — is a Standard on Auditing issued by the ICAI Auditing and Assurance Standards Board. Setting overall materiality, performance materiality, and the threshold for clearly trivial misstatements. To apply the concept of materiality appropriately in planning and performing the audit.
Yes. Standards on Auditing are deemed to be prescribed under Section 143(10) of the Companies Act 2013, and ICAI members must comply with them in every audit of historical financial information. Non-compliance must be justified and can attract professional consequences in peer review, NFRA inspection, and disciplinary proceedings.
Documentation sufficient for an experienced auditor with no previous connection to the audit to understand what was done and why (SA 230). For SA 320 in the planning phase, that means evidencing: Overall materiality: benchmark + percentage (PBT 5%, turnover 0.5-1%, equity 1-3% — choose appropriate); Performance materiality: 50-75% of overall materiality (lower for higher risk); Clearly trivial threshold: 3-5% of overall materiality.
