REPUBLIC OF THE PHILIPPINES

COMMISSION ON AUDIT
Commonwealth Avenue, Quezon City, Philippines

Agency/Unit/Corporation/Project: Name

Period Covered: CY 20xx ending December 31, 20xx

Objective: To set overall materiality for the purpose of planning the engagement

Users of Financial Statements

Users Focus/Concerns
Public in General
Use of funds for the purpose intended; benefits delivered from the
Legislative
project; compliance with rules and regulations
Oversight Bodies

Qualitative Considerations
Public expectations and interest
Compliance with laws and regulations
Needs of legislative, executive and oversight bodies
Need for transparency

Financial Information (in million pesos)

Planning Date Latest Financial Data (In billion ₱)

Assets 1.380
Liabilities 0.520
Equity 0.860
Revenues 0.001
Expenses 1.350
Previous Materiality 0.011

Quantitative Materiality
Percentage (%)
Possible
Type of Entity Determined Materiality Level (In
Benchmark Prescribed Applied
million ₱)
Expenditure driven Assets
Liabilities
Equity
Revenue
Expenses 1 1 13.500

Considering the existing condition and professional judgment, the overall materiality for planning is
set at ₱13.500 million. There is no felt need to increase the percentage prescribed by the
Commission considering that some of the prior years’ adjustments were not effected and a number
of prior years’ recommendations remained unimplemented.

Given the Overall Materiality Level of₱13.500 million, the performance materiality and specific
materiality are set as follows:

Types Base Percentage Determined

 REPUBLIC OF THE PHILIPPINES
COMMISSION ON AUDIT
Commonwealth Avenue, Quezon City, Philippines

Materiality Materiality
(In million Prescribed Adopted Level (In million
₱) ₱)
Performance Materiality

(Auditors should consider the results of

risk assessment, misstatements
13.500 50 50 6.750
identified in prior years, and relevant
qualitative factor in deciding to use
percentage lower than the prescribed
levels)
Testing Threshold
6.750 25 25 1.687
(Auditors to determine high value
items to be included in the audit)
Specific Materiality For Repairs
and
(Identify the classes of transactions, Mainte-
0.20 0.20 1.620
account balance determined to be nance
subjected to specific materiality Expenses of
considering the results of risk analysis.) 810.000

Name Position Date

Prepared by ATL
Reviewed by SA/RSA
Approved by CD/RD