When setting a preliminary judgement about materiality at the planning stage, auditors may have to subsequently change this preliminary assessment. The new assessment is called:

Question

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If auditors determine that the preliminary judgement about materiality at the planning stage is no longer appropriate, they may need to revise their assessment of materiality. This could be due to new information that comes to light during the audit or changes in the nature of the entity or the environment in which it operates. Allocated materiality refers to the amount of materiality set for individual account balances or transactions. Planned materiality is the preliminary judgement made at the planning stage. Segment materiality refers to the amount of materiality set for specific operating segments of the entity. Therefore, the best choice is revised assessment of materiality.

When Setting a Preliminary Judgement About Materiality at the Planning