Planning Federal Materiality by Compliance Requirement (6) CFAE included the typical monetary vs. nonmonetary determinations for each compliance requirement in this program. However, auditors should tailor these assessments as appropriate based on the facts and circumstances of their entity’s operations. See further guidance below. (1) (2) (6) (6) (3) (4) (5) (5) (6) Direct & If Applicable material monetary, Final Overall Federal per to Monetary or population Inherent control Detection audit risk materiality by Compl. program subject to risk (IR) risk (CR) risk of of compl. Suppl. / entity require. assess. assess. noncompl. noncompl. requirement typically 5% of population subject to Compliance Requirement (Yes or No) (Yes or No) (M/N) (Dollars) (High/Low) (High/Low) (High/Low) (High/Low) requirement A Activities Allowed or Unallowed M 5% B Allowable Costs/Cost Principles M 5% C Cash Management N 5% D RESERVED E Eligibility M/N 5% F Equipment & Real Property M 5% Mgmt G Matching, Level of Effort, M 5% Earmark H Period of Availability M 5% (Performance) I Procurement & Sus. & N 5% Debarment J Program Income M 5% K RESERVED L Reporting N 5% M Subrecipient Monitoring N 5% N Special Tests & Provisions N 5% (Provide an assessment for each)
Planning Federal Materiality by Compliance Requirement (6) CFAE included the typical monetary vs. nonmonetary determinations for each compliance requirement in this program. However, auditors should tailor these assessments as appropriate based on the facts and circumstances of their entity’s operations. See further guidance below. (1) (2) (6) (6) (3) (4) (5) (5) (6) Compliance Requirement Applicable per Compl. Suppl. Direct & material to program / entity Monetary or If monetary, population subject to require. Inherent risk (IR) assess. Final control risk (CR) assess. Detection risk of noncompl. Overall audit risk of noncompl. Federal materiality by compl. requirement (Yes or No) (Yes or No) (M/N) (Dollars) (High/Low) (High/Low) (High/Low) (High/Low) typically 5% of population subject to requirement A Activities Allowed or Unallowed M 5% B Allowable Costs/Cost Principles M 5% C Cash Management N 5% D RESERVED E Eligibility M/N 5% F Equipment & Real Property Mgmt M 5% G Matching, Level of Effort, Earmark M 5% H Period of Availability (Performance) M 5% I Procurement & Sus. & Debarment N 5% J Program Income M 5% K RESERVED L Reporting N 5% M Subrecipient Monitoring N 5% N Special Tests & Provisions (Provide an assessment for each) N 5%