Glossary/Materiality

Materiality

Materiality is the threshold above which a misstatement or variance could influence decisions of financial statement users.

Operational use

Close teams apply materiality to flux review so immaterial accounts do not consume controller hours.

How FinanceAI handles this

Close Agent thresholds mirror your percent and dollar gates per account class.

Questions

Planning vs performance materiality?

Flux often uses performance materiality — align thresholds in pilot config.

Run it on your own document

Upload a dummy bank statement, KYC pack, or trial balance. Agents read it, apply policy checks, and show each step before a human would approve.