tally_calculate_materiality
Compute overall, performance, and clearly-trivial materiality thresholds from a benchmark amount, with the documented basis for audit workpapers.
Instructions
Compute overall materiality, performance materiality and the clearly-trivial threshold from a benchmark figure, with the basis documented alongside.
WHEN TO USE: when planning an audit or review, and whenever a question depends on whether an amount is material. Use the returned figures rather than working thresholds out in conversation — the arithmetic here is exact and it is recorded with its basis, which is what a workpaper needs.
YOU MUST SUPPLY THE BENCHMARK AMOUNT. This tool does not read it from TallyPrime, on purpose: deciding which figure is "revenue" or "profit before tax" in a particular set of books is a judgement, and a tool that guessed wrong would produce a credible threshold on the wrong base. Read the figure from tally_get_statement, agree it with the user, then pass it here.
RETURNS: overall materiality, performance materiality, the clearly-trivial threshold, and the full basis — benchmark used, amount, percentages applied, and the customary range for that benchmark so the choice can be seen to be reasonable or deliberately not.
PERCENTAGES: sensible defaults are applied and stated (see the basis in the response), and every one can be overridden. No auditing standard fixes a percentage — materiality is a judgement about the users of the financial statements — so treat the defaults as a documented starting point to discuss, never as the answer.
PAGINATION: not applicable.
Read-only: nothing here can modify TallyPrime.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| amount | Yes | The benchmark amount, as a plain number string, e.g. "12500000". Read it from the financial statements and agree it with the user first. Sign is ignored — a loss is as valid a base as a profit. | |
| currency | No | Currency label for the output. Defaults to INR. | |
| benchmark | Yes | Which figure the threshold is based on. The choice is a judgement: profit-based for profitable trading entities, revenue or assets where profit is volatile or marginal. | |
| overallPercent | No | Percentage of the benchmark for overall materiality, e.g. "5". Defaults to the customary figure for the chosen benchmark, which is stated in the response. | |
| performancePercent | No | Performance materiality as a percentage OF OVERALL MATERIALITY, e.g. "75". Customarily 50–75%, lower where the risk of misstatement is higher. Defaults to 75. | |
| clearlyTrivialPercent | No | Clearly-trivial threshold as a percentage OF OVERALL MATERIALITY, e.g. "5". Customarily 5%. Defaults to 5. |