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You cannot just fix materiality level it depends on the judgment of auditor and the level of risk he is facing.
Materiality level is a level or a figure or maybe a range of figure which auditor’s sets for himself in the Planning stage so that to asses the risk and search the areas where the figure exceeds the materiality level.
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materiality level will be set at both planning and substantive testing stages by auditor. At planning stage it is called planning materiality and at substantive testing stage – tolerable error. Planning materiality will be defined using rule of thumb (% of total assets, sales, PBIT figure). whichever method used depends on which area of FS represents risk. At the later stage, if auditor has tested internal controls and identified that control risk is high, he will set more strict level of tolerable error while substantive testing. At final stage auditor comes to final materiality level as a guidance for expressing opinion about FS (qualifying material or pervasive discrepancies).
hope that will help
rgrds
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