On what basis performance materiality is set and what are the criteria to set it or change it? If you want to change it what things are to be kept in mind?

Performance materiality is the level of materiality set for specific accounts or classes of transactions during an audit. It is determined by the auditor based on their professional judgment and considers the overall financial statements’ materiality level. When setting performance materiality, auditors consider several factors: 1. Overall materiality: The materiality level for the financial statements…...