Managing Materiality Level


If you find that Mamut Validis is being too sensitive, and is reporting a large number of potential anomalies, you can adjust the materiality value so that it generates a more manageable number of items for you to investigate. Items which fall below your materiality value are not shown individually in the Mamut Validis displays, but are grouped together under the description "Below materiality threshold".

How to change your materiality level

To set the preferred materiality level, the user can simply use the filter that appears at the top of the Summary Analysis section of the screen. This function is available in all four analysis screens, Accounting Rules, Trends, Exceptional Values, Unusual Combinations.

  1. Under Summary Analysis, click on either Accounting Rules, Trends, Exceptional Values, Unusual Combinations.

  2. In the bottom half of the screen, under Analysis Results, click on Edit beside Materiality. Here you are able to set the materiality level.

  3. Use the drop-down box to select the preferred materiality value.



    Manual Materiality
    : Type the minimum value you wish to use into the adjacent value field.

    Pre Tax Profit/Loss
    : These settings are pre-set with guideline percentages used by accountants in practice. These percentages can be adjusted by the user if appropriate. Enter the percentage figure you wish to use in the adjacent value field.

    Use the largest resulting value
    . This value is based on the largest calculation taken from the guideline percentages.

    No materiality filtering
    : Disabling materiality altogether will enable Mamut Validis to detect every single anomaly which is returned for review.

  4. Set the materiality for the specific analysis that is being reviewed, or you can apply it across all analysis views by checking the box Apply to all views.

  5. Once complete, click on the  button Apply to save your new comment; or use the Cancel button to discard it.

Any change you make is applied immediately to your Mamut Validis results.


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