Audit Materiality

Determination of audit materiality is an important consideration when beginning the municipal audit process.

Audit materiality often has a different threshold than materially for a municipality’s performance management. It is important to have a comprehensive understanding of the end goal of the audit materiality threshold.

Finance officers have to be prepared to explain the difference between audit materiality and performance materiality. This info is for sharing with fellow administrators, the municipal executive team, elected officials and the public.