ISA 320 · Not-for-Profit

Materiality Calculator for Not-for-Profit

Pre-configured for entities where profit is not the primary objective and total expenditure better reflects the scale of operations.

ISA 320 · LIVEv2026.04General

Materiality compiled,
not just calculated.

Session
0xB96C
Fiscal Year
FY 2026
Benchmark
Profit Before Tax
inputs.conf
methodology.conf
README.md
01// entity— ISA 320.A4
02entity_name=
03fiscal_year_end=
04public_interest=
05first_year=
06industry=preset
suggested → PBT 5% is the standard starting point. Adjust for PIE/first-year.
09// benchmark— ISA 320.A4–A7
10benchmark.type=
11benchmark.amount=
12benchmark.percentage=
5.0%
range 5–10%
13benchmark.rationale=
14percentage.rationale=
Rationale fields · ISA 320.14 documentation
16// methodology— firm overrides
17performance_mat=
18trivial_threshold=
ISA 450.A2
19pm.rationale=
PM rationale · aggregation risk documentation
21// particular_materiality— ISA 320.10 · lower thresholds for sensitive areas
22Users expect full disclosure even of small amounts. ISA 550 significant risks apply.
23Regulatory sensitivity; users sensitive to disclosure precision.
24ISA 570 — qualitative by nature, lower threshold often appropriate.
25Misstatements that flip compliance status are material regardless of size.
26IFRS 8 — user decisions track segment performance.
27Industry-specific: bank capital ratios, insurance solvency, tax provision disclosure.
28Fair value estimates, R&D for pharma, loss reserves for insurance, NAV per share for funds.
Particular materiality checklist · ISA 320.10
30// normalisation— ISA 320.A6 · strip exceptional items
No adjustments. Add a line to exclude restructuring costs, impairments, or one-off gains.
Normalisation adjustments · one-off add-backs
40// prior_year_comparison— ISA 320.12 · year-on-year
41prior_year.amount=EUR
Prior-year comparison · YoY delta warnings
50// sensitivity— ±0.25 to ±2 percentage points
Enter a benchmark amount to see sensitivity analysis.
Sensitivity table · defensive range
60// component_materiality— ISA 600.21–23 · group audits
61group_audit=
Component materiality · ISA 600 group audits
70// revision_log— ISA 320.12–13 · changes during the audit
No revisions logged. Add an entry when new information changes materiality (e.g. actual results diverge from forecast, benchmark misstated, scope change).
Revision log · ISA 320.12 documentation
free tier·5/8 core fieldsEUR·no adj.
previewwp-mat-320-2026.pdf
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Overall materiality
—
Awaiting input
TOTAL
Performance mat.
—
75% · ISA 320.11
Clearly trivial
—
5% · ISA 450.A2
Tolerable misstmt.
—
Derived · 50% of perf.
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Benchmark guidance

Not-for-profit entities and public sector organisations differ fundamentally from commercial enterprises: their objective is to deploy resources effectively for their mission, not to generate profit. PBT is typically meaningless as a benchmark.

Choosing the right benchmark

Total expenses at 0.5–1% or total revenue at 0.5–1% are the standard ranges. For publicly funded entities, the lower end reflects heightened accountability for public money.

Key audit considerations

Grant income recognition — conditions vs. restrictions under IFRS or local GAAP — is often the primary area of judgment.

Compliance with donor restrictions and fund accounting requirements may create additional qualitative materiality considerations.

Related party transactions are subject to heightened scrutiny and low qualitative materiality thresholds.

For Dutch foundations (stichtingen) and associations (verenigingen), compliance with statutory objectives and governance codes may be in scope.

Frequently asked questions

What benchmark should I use for not-for-profit audits?
Total expenses at 0.5–1% or total revenue at 0.5–1% are the standard ranges. For publicly funded entities, the lower end reflects heightened accountability for public money.
What are the key materiality considerations for not-for-profit?
Grant income recognition — conditions vs. restrictions under IFRS or local GAAP — is often the primary area of judgment. Compliance with donor restrictions and fund accounting requirements may create additional qualitative materiality considerations. Related party transactions are subject to heightened scrutiny and low qualitative materiality thresholds. For Dutch foundations (stichtingen) and associations (verenigingen), compliance with statutory objectives and governance codes may be in scope.
How does ISA 320 define materiality?
ISA 320 requires auditors to determine materiality for the financial statements as a whole when establishing the overall audit strategy. The benchmark chosen and the percentage applied depend on the nature of the entity, the needs of financial statement users, and the auditor's professional judgment.

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