Materiality on mid-size Hong Kong fit-out programmes
Setting materiality for project cost audits on fit-out programmes between HK$15 million and HK$80 million.
Materiality on a project cost audit is not copied from the statutory audit file. Programme risk, concentration of spend in a few certificates, and board sensitivity all shape the threshold.
Starting points we discuss in planning
For many fit-outs in the HK$15–80 million band, planning materiality often lands as a fraction of the approved budget, with a lower threshold for related-party invoices and cash-like disbursements. Exact figures are set per engagement.
Why concentration matters
If three payment certificates hold most of the spend, testing those thoroughly can matter more than expanding a random sample of small invoices. Boards care about the large doors, not every drawer.
Documenting the choice
We record materiality and any revisions in the planning memo so the findings meeting does not reopen the threshold debate after exceptions appear.