Part (b) for 5 marks required candidates to define materiality and determine how the level is assessed. Generally candidates performed well on defining materiality and were able to provide a couple of points in relation to the assessment of materiality. Most candidates correctly identified benchmarks that can be used to calculate materiality and many also commented on the need for professional judgement.

Unfortunately, some candidates failed to identify a sufficient number of points, as a definition of materiality along with an assessment of benchmarks such as 1% of revenue would only have scored two marks in total. In order to pass this part of the question further points were required. In addition only a small minority of candidates commented on performance materiality which is a new topic from the revised ISA 320 Materiality in Planning and Performing an Audit.