9903.305 Materiality

Are you asking about materiality for purposes of the CAS or materiality in general?

I am interested in both as used in government contracting.

Why not do some research of your own? Check the DCAA Audit Manual and audit guidance. Check Government Contract Costs & Pricing, 2d ed., by Karen Manos. This is the age of the internet.

By the way, the answer to your opening question is: Yes.

I believe that I am finding that materiality is ultimately determined by how it influences a claim for payment. I see anything from 2% to 5%. Same as found in the CAS Preambles.

But, I thought an invoice to the government has to be 100% accurate, otherwise it potentially is a false claim, regardless of how much the inaccuracy. The invoice is either correct or not, not mostly correct. Therefore it seems that anything that creates an incorrect invoice (false claim) is material, the threshold goes to 0%.

I don’t have access to the Karen Manos book

According to FASB the evaluation of a particular item’s materiality is complex, involves quantitative as well as qualitative considerations and requires seasoned professional judgment; and that there are no prescribed thresholds – big help.

Whynot,

There is no established "bright line" test for materiality.

It depends on the facts and circumstances. It is subjective, not objective.

The search that Vern suggested you embark on is worth the effort because, if nothing else, it will lead you to greater understanding.

I suspect at the end of the journey you will wind up where you started.

Who ever knew CAS would be so Zen-like?

Hope this helps.