Significant Transaction Class
Score a transaction class for audit significance.
Description
Transaction-class selection can combine volume, value and complexity judgments.
Transaction-class selection can combine volume, value and complexity judgments. The score is a fixed planning heuristic.1
Score a transaction class for audit significance.
When to use Significant Transaction Class
Use this tool to score a transaction class for audit significance.
Prepare the documented facts, aligned totals or expected/observed evidence labels requested. Choose applicable requirements and thresholds separately before interpreting a planning screen.
How to use Significant Transaction Class and understand its results
- Prepare the documented facts, aligned totals or expected/observed evidence labels requested. Choose applicable requirements and thresholds separately before interpreting a planning screen.
- Enter annualTransactionCount, annualTransactionValue, materiality, complexProcessing, significantJudgment, selectionScoreThreshold using the field table and calculation rules, then run the tool.
- Read valueToMateriality, selectionScore, significantClass. The explanation below defines the units, signs, ordering and any flags or placeholder values.
- If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.
| Input field | Meaning | Value type; see rules below | Requirement |
|---|---|---|---|
| annualTransactionCount | Annual transaction count | integer; minimum: 0 | Required |
| annualTransactionValue | Annual transaction value | number; minimum: 0 | Required |
| materiality | Materiality | number; minimum: 0 | Required |
| complexProcessing | Complex processing | boolean | Required |
| significantJudgment | Significant judgment | boolean | Required |
| selectionScoreThreshold | Selection score threshold | number; minimum: 0 | Required |
Enter nonnegative counts/value/threshold, positive materiality and booleans. Return value ratio, score and inclusive score gate.
score=1(count≥1000)+2(value/materiality≥1)+2complex+2judgment Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| valueToMateriality | Annual value to materiality | number; minimum: 0 |
| selectionScore | Transaction-class selection score | integer; minimum: 0 |
| significantClass | Meets supplied significance threshold | boolean |
{
"input": {
"annualTransactionCount": 2000,
"annualTransactionValue": 200000,
"materiality": 100000,
"complexProcessing": true,
"significantJudgment": false,
"selectionScoreThreshold": 5
},
"output": {
"valueToMateriality": 2,
"selectionScore": 5,
"significantClass": true
}
}Limitations and assumptions
No materiality, significant-risk determination or audit-standard conclusion is established.
Numeric inputs, where present, must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors. A successfully returned false flag is an evaluated outcome; its meaning is explained above.
Alternative or Complementary methods
Use Inherent Risk Score: Combine inherent-risk factors into a weighted score. For a complementary task, use Sampling Coverage: Measure audit sample coverage by item count and value.
References
-
Significant Transaction Class — tool.io
Similar or alternative tools
- Inherent Risk Score
Combine inherent-risk factors into a weighted score.
- Sampling Coverage
Measure audit sample coverage by item count and value.