What does component materiality mean on the CPA exam?

Component materiality. Materiality set for one part of a group, below group materiality, so that undetected errors across several components cannot add up past the group threshold.

Defined against AU-C 600A.32c.Current until December 15, 2026

Which CPA exam sections use component materiality?

Component materiality appears in the AUD section of the CPA exam.

Related terms

• overall materiality: Materiality for the statements as a whole, set during planning.
• clearly trivial: So small that it plainly does not matter, on its own or added to everything else.

See also

• Every CPA exam term in this glossary
• The CPA exam, section by section
• A free FAR mock exam