If an auditor sets a planning materiality at planning stage how does that happen ? Because weh avent started out audit work yet.. We are only doing planning by understanding entity etc.. so on whta basis do i decide $xxxx is materilaity level if i dont do work on fin statement ?
You would generally expect to have draft financial statements as a basis on which to plan the audit. If not draft financial statements you would be able to use the trial balance extracted from the general ledger.