Procedures

Materiality, locked before fieldwork.

SA 320 mandates that materiality be set before fieldwork begins, documented with rationale, and locked. A three-step wizard guides the benchmark choice, PBT, Turnover, or Equity, applies the percentage within the ICAI 3-10 percent band, derives Performance Materiality and Clearly Trivial Threshold, and locks the memo. Out-of-band percentages require written rationale captured in the audit trail per SA 230.

• Step 1, pick benchmark: PBT, Turnover, or Equity
• Step 2, pick percentage with the ICAI 3-10% band rendered
• Step 3, derive PM (50-75% of OM) and CTT (typically 5% of OM)
• Off-band selections require written rationale logged to audit trail
• Locked memo consumed by Sampling, Findings, and Opinion

Revision triggers a documented re-evaluation note per SA 230. The original and revised memo are both preserved.

Sampling, the formula, not the answer.

Sample size equals the ceiling of confidence factor times population value divided by Performance Materiality. Confidence factors come from the Poisson distribution, 3.0 for 95 percent confidence, 2.3 for 90 percent, 1.6 for 80 percent. The math is rendered on every Working Paper. Auditors defend the number; CORAA shows the working.

• Formula ceil((CF × Population value) / PM) rendered on every plan
• Confidence factors visible, 3.0 / 2.3 / 1.6 mapped to high/medium/low risk
• Worked example: Trade Payables ₹5 Cr × CF 3.0 / PM ₹35.8 L = 42 vouchers
• Force-census rows for 100% testing, year-end JEs, RPT, employee benefits
• MUS for high-value populations; simple random otherwise

Auditor sees the calculation, not a black box.

Reproducible. Defensible. Peer-review ready.

Each random selection is seeded with a deterministic value derived from the engagement ID and balance head code, hashed via SHA-256 and pinned to a specific numpy version. A peer reviewer running the same seed obtains the same vouchers. SA 230 Para. 8 reproducibility satisfied; NFRA inspection ready.

• Seeded selection per SA 230 Para. 8
• SHA-256 hash and numpy version pinned for cross-year reproducibility
• Seed rendered explicitly on every Working Paper
• Locked plans read-only, unlock requires documented note
• Force-census rows configurable per engagement

Going Concern, with the financial work done.

SA 570 (Revised) requires evaluation of 16 indicators across financial, operating, and other categories. CORAA pre-fills the eight financial indicators from Balance Sheet, P&L, and Cash Flow data, working capital position, debt-service coverage, current ratio trend, net liability detection. The auditor provides the operating and other inputs with notes.

• 16 indicators per SA 570 (Revised), financial 8, operating 4, other 4
• Financial 8 auto-prefilled from BS / P&L / Cash Flow data
• Operating and other indicators captured with Yes/No/N/A and notes
• Each indicator anchored to its SA 570 paragraph reference
• Conclusion drives Opinion type per the SA 570 → SA 700 mapping