Auditing & Assurance › Audit Risk & Materiality
How does materiality change as the audit progresses?
AdvancedAnswer
Materiality is revised if the auditor becomes aware of information that would have led to a different initial figure—e.g., actual results differ materially from the estimates used to set it, or the benchmark changes. Revising materiality may require reassessing performance materiality and whether procedures performed are still adequate.
Real-world example When final profit comes in far below the estimate used for planning, the team revises materiality downward and extends testing.