MyWorkpapers RiskFlow system fully automates the identification of material balances in the Audit Plan, with each financial statement area (represented by the Lead Schedules) being marked as either material or not depending on whether the balance displayed is greater than Performance Materiality. This concept is illustrated in the below image.
Overridding the Automatic Materiality Determination
Obviously there is more to determining whether a balance is material or not than a simple comparison of the balance against the Performance Materiality set, non-financial qualitative factors potentially causing a particular class of transaction or balance to be material. Accordingly, in the Audit Plan you are able to quickly and easily override the automatic materiality determination as follows.
- Identify the materiality deterimination which you would like to override
- Hover over the Yes/No response until the lock icon appears
- Click on the lock icon to access the override menu
- Provide a description as to why the item is/is not considered material
- Click Override
- The cell will now display your override and will turn to a shade of red to indicate that it has been overridden. You can hover your mouse cursor over the dark red flag in the top left hand corner of the cell at any time to visibly see the reason for the override