Materiality

Configure Validis to your business size and type.

Validis allows you to filter the results you see to only include material items. This can be manually set, per analysis, to control the volume of potential anomalies that are brought to the user’s attention, ensuring that only areas of material concern are highlighted.

Materiality is a term used by auditors and accountants to describe the lowest value of transactions they will review in order to still reasonably ascertain that the financial statements are free from significant error.

In order to focus the user’s attention only on issues that are important to their business size and type, materiality can be applied to filter the Validis results to ensure only transactions above a specified value are returned. This will provide a more relevant and manageable amount of data for review.

This configurability allows the user to personalize the Validis analysis to their needs.

Materiality options

The options for materiality are either:

% of turnover
% of net assets
% of total assets

These are pre-set using guideline percentages used by accountants in practice. These percentages can be adjusted by the user if appropriate.

There are further options for setting materiality by:

Using the largest resulting value from the above calculations
Manually setting a minimum value of transactions for review
Disabling materiality altogether so that every single anomaly detected by Validis is returned for review

Setting the Materiality

Materiality is set by using the simple filter that appears at the top of all analysis results. Using the drop down box the preferred materiality can be set either for the specific analysis that is being reviewed, or to apply it across all results views.