 Factors to consider what is material

o Size of item – in relative terms rather than absolute amt

o Nature of item – legality, sensitivity, normality of trans/ identity of parties involv
o Circumstances of occurrence – context in which item/ error occurs
o Reliability, precision and amt of evidence
 Performance Materiality
o Set to reduce to an appropriately low level the probability that aggregate
uncorrected and undetected misstatements exceeds materiality for FS as a
whole.