As it relates to an audit,materiality is

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Materiality in an audit is determined based upon the importance to a user of the financial statements. It is an accounting concept that refers to the significance of an amount, transaction, or discrepancy in the financial statements, which could affect the decision-making of the users of those statements. The auditor must decide what is material and plan their audit procedures around it. The materiality threshold is often set based on a percentage of a financial statement item, such as revenue or net income.

As It Relates to an Audit,materiality Is