Materiality (audit and reporting)

Roles that need it

• External Audit Associate
• External Audit (Financial Services)
• General Accountant
• Internal Auditor

Skills it belongs to

• Audit methodology
• Risk judgment and escalation instinct

Related concepts

• External audit (statutory audit)An external audit is an independent examination of an entity's financial statements by a registered statutory auditor, ending in an audit opinion. EU law sets auditor independence, rotation for public-interest entities such as banks and insurers, and the content of the audit report.
• Audit opinionThe audit opinion is the auditor's conclusion on whether financial statements give a true and fair view under the applicable framework. It can be unmodified (clean), qualified, adverse or a disclaimer. For public-interest entities the report also describes key audit matters.
• Double materialityDouble materiality is the CSRD principle that a sustainability matter must be reported if it is material from either angle: the company's impacts on people and the environment (impact materiality) or the matter's effects on the company's finances (financial materiality).

Sources

• ISA 320 Materiality in planning and performing an audit, ICAEW Library (external site) accessed 31 Oct 2026
• Conceptual Framework for Financial Reporting, IFRS Foundation (external site) accessed 31 Oct 2026

Updated 31 Oct 2026.