AAAHow to get the Preliminary Materiality Proposed

Welcome to OpenTuition forums! If you would like a tutor response, please use the relevant tutor forum. I don't know where you are looking but if you look at the Specimen exam and practice exams, materiality should always have a justification. E.g. from the specimen exam: Benchmarks Using profit before tax or operating profit as a suggested benchmark provides the following range: 5–10% of profit before tax = range of $4·05 million – $8·1 million. 5–10% of operating profit = range of $7·25 million – $14·5 million. These benchmarks are only a starting point for determining materiality and professional judgement will need to be applied in determining a final level to be used during the course of the audit. As this is a new client and therefore an initial audit engagement, due to the increased detection risk, materiality should be set at the lower level of the range at $4 million