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What is a materiality limit?
Hannah Olsson avatar
Written by Hannah Olsson
Updated over a week ago

A Materiality Limit is an optional tool in Cimplico Workpapers that helps you focus on the most important accounts in your trial balance (TB). By setting a monetary or percentage threshold, accounts with small changes or balances will be excluded.

💡 Tip: If you'd like to apply a materiality limit after a workpaper has been created, you can do this by editing workpaper settings.

How does it work?

A materiality limit applies a filter to accounts based on either:

  • The current year’s amount exceeding a specified monetary value.

  • The percentage change between the current year’s amount and last year’s amount exceeding a specified percentage.

For example:

  • Monetary limit: Exclude accounts with balances below $500.

  • Percentage limit: Exclude accounts with changes of 5% or less from the previous year.

⚠️ Note: Worksheets with checklist items will not be excluded, even if they fall below the materiality limit. This feature is only relevant for users with a trial balance (TB).

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