Auditing & Assurance › Audit Risk & Materiality
What is 'clearly trivial' and how does it relate to materiality?
BeginnerAnswer
Clearly trivial is a threshold, well below materiality, under which misstatements are so small—individually and in aggregate—that they need not be accumulated because they clearly wouldn't affect the statements even collectively. Items above it are accumulated and evaluated. It's a practical floor, not a smaller materiality.
Real-world example Errors under the clearly-trivial threshold aren't tracked, while anything above is accumulated for evaluation against materiality.