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Lekhya.in

Free tool

Calculate materiality for this engagement, right now.

Pick a benchmark — profit before tax, revenue, total assets, or equity — enter the figure, and get overall materiality, performance materiality, and a clearly-trivial reference point, with the reasoning spelled out at each step.

Benchmark

What this does and doesn't do

  • Nothing you type leaves your browser — there's no file, no upload, no server call.
  • SA 320 does not prescribe a percentage or benchmark — this applies the ranges commonly used in practice, not a rule. The benchmark, percentage, and final figure remain the engagement partner's documented judgement.

How to use this

  1. Pick the benchmark that fits this entity

    A stable, profit-making company usually benchmarks off PBT; a loss-making or volatile-profit entity often benchmarks off revenue or total assets instead.

  2. Enter the figure and the percentage you're applying

    Use the prior or current year's figure per firm policy, and document why that percentage, not just the number it produces.

  3. Set performance materiality below 100%

    75% is a common starting point; a higher-risk engagement typically sets it lower, leaving more room for undetected misstatement.

  4. Carry the figures into the audit file

    Document the benchmark, the percentage, and the judgement behind both — the number alone doesn't show a reviewer how you got there.

This free tool, and where it stops

This free tool checks

  • Overall materiality, performance materiality and a clearly-trivial reference, from the benchmark and percentage you choose

A full engagement in Lekhya also checks

  • Materiality carried through automatically into sample sizing and exception evaluation across the whole engagement
  • Prior-year materiality and its basis retained for comparison, not recalculated from scratch every year
  • A documented basis the reviewer can see without asking for it separately

One run, one file, four or five rules — versus every procedure a real engagement needs, run continuously against the full population, with every exception linked to its source document.

See it run on a full engagementRead how it works