Audit Planning — Materiality & Risk AssessmentMACROSLM · PLANNING & CROSS-CUTTING

1210AS 2105 / AS 2110
Prepared 2026-07-13

Planning materiality & significant-account risk matrix

Chipotle Mexican Grill, Inc. (NYSE: CMG) · FY2024 · integrated audit

Reporting framework: US GAAPFigures: $ in millions, as reported FY2024Component: single-entityBenchmark basis: auditor judgment

SUMMARY INCOME STATEMENT — SELECT A BENCHMARK

Total revenue	11,314	+14.6%
Food, beverage & packaging	3,372	29.8%
Labor	2,795	24.7%
Occupancy, D&A, G&A & other	3,231	28.6%
Operating income	1,916	16.9%
Income before income taxes	2,010	17.8%
Provision for income taxes	(476)	4.2%
Net income	1,534	13.6%
Total assets (balance sheet)	9,204	—

MATERIALITY DETERMINATION

BenchmarkIncome before income taxes$2,010M

Overall materiality (OM)5.00% of benchmark$100.5M

Performance materiality75% of OM$75.4M

Clearly trivial threshold5% of OM$5.0M

Auditor judgment — % applied5.00%

Suggested range for pre-tax income: 3.0%–8.0%

SIGNIFICANT ACCOUNTS & ASSERTIONS — RISK OF MATERIAL MISSTATEMENT

SHOW

Account	Relevant assertions	Inherent risk drivers	Flags	RMM
Revenue — restaurant sales	Occurrence · Cutoff	High volume, digital/third-party channels, period-end cutoff; presumed fraud risk (AS 2110).	SIGFRAUD	Higher
Management override of controls	All · Entity-level	Mandatory fraud risk; manual top-side journal entries, estimates.	FRAUD	Higher
Operating lease ROU assets & liabilities	Valuation · Completeness	ASC 842; discount-rate & term judgment across large lease portfolio.	SIG	Higher
Impairment of long-lived assets	Valuation	ASC 360; cash-flow forecasts, restaurant-level triggering events.	SIG	Elevated
Gift cards — deferred revenue & breakage	Valuation · Cutoff	Breakage estimate; redemption-pattern assumptions.	—	Elevated
Self-insurance reserves	Valuation · Completeness	Actuarial estimate; workers' comp & general liability.	—	Elevated
Accrued payroll & bonus	Completeness · Cutoff	Period-end accrual; performance-bonus estimate.	—	Normal
Income taxes	Valuation · Presentation	Multi-state; uncertain tax positions, effective-rate reconciliation.	—	Elevated

Financial data from Chipotle Mexican Grill FY2024 10-K: revenue $11,314M (+14.6%), operating income $1,916M (16.9%), income before taxes $2,010M, net income $1,534M, total assets $9,204M. Operating-cost lines shown at reported cost ratios (food/bev 29.8%, labor 24.7%); occupancy/D&A/G&A grouped. Materiality inputs are interactive — select a benchmark and flex the judgment percentage; performance materiality and the clearly-trivial threshold recompute. Filter the risk matrix by significant and fraud risks.