Introduction: Materiality by Compliance Requirement Matrix Planning Federal Materiality by Compliance Requirement See Footnotes 1-6 below the matrix table for further explanation, in particular, review note 6 which discusses tailoring the matrix assessments. (1) (2) (6) (6) (3) (4) (5) (5) (6) If Direct & monetary, Final Federal Applicable material to population Inherent control Detection Overall materiality by per Compl. program / Monetary or subject to risk (IR) risk (CR) risk of audit risk of compl. entity nonmonetary 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 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 N 5% an assessment for each) (1) Taken form Part 2, Matrix of Compliance Requirements, of the OMB Compliance Supplement ( ). When Part 2 of the Compliance Supplement indicates that a type of compliance requirement is not applicable, the remaining assessments for the compliance requirement are not applicable. (2) If the Supplement notes a compliance requirement as being applicable to the program in column (1), it still may not apply at a particular entity either because that entity does not have activity subject to that type of compliance requirement, or the activity could not have a material effect on a major program. If the Compliance Supplement indicates that a type of compliance requirement is applicable and the auditor determines it also is direct and material to the program at the specific entity being audited, the auditor should answer this question and then “Yes,”
Introduction: Materiality by Compliance Requirement Matrix Planning Federal Materiality by Compliance Requirement See Footnotes 1-6 below the matrix table for further explanation, in particular, review note 6 which discusses tailoring the matrix assessments. (1) (2) (6) (6) (3) (4) (5) (5) (6) Compliance Requirement Applicable per Compl. Direct & material to program / entity Monetary or nonmonetary 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% (1) Taken form Part 2, Matrix of Compliance Requirements, of the OMB Compliance Supplement ( ). When Part 2 of the Compliance Supplement indicates that a type of compliance requirement is not applicable, the remaining assessments for the compliance requirement are not applicable. (2) If the Supplement notes a compliance requirement as being applicable to the program in column (1), it still may not apply at a particular entity either because that entity does not have activity subject to that type of compliance requirement, or the activity could not have a material effect on a major program. If the Compliance Supplement indicates that a type of compliance requirement is applicable and the auditor determines it also is direct and material to the program at the specific entity being audited, the auditor should answer this question “Yes,” and then
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