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An item is material if its omission or misstatement could reasonably be expected to affect the economic decisions of an addressee of the audit report.
Tolerable error for tests of control is the maximum deviation from the control procedure before auditors reassess the control risk.
Tolerable error in substantive procedures is the maximum monetary error in an amount that would be accepted that would still allow the auditor to conclude that the accounts are not materially misstated.
Obviously, particularly when it come to substantive tests there is a close link between materiality and tolerable error
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