SET PRELIMINARY JUDGMENT ABOUT MATERIALITY Factors Affecting Judgment Base X (function of client Percentage (function of audit risk ●●●●●●●●●0●● Preliminary estimate of materiality @2000 Prentice hall.IncArens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. SET PRELIMINARY JUDGMENT ABOUT MATERIALITY Base X (function of client) Percentage (function of audit risk) = Preliminary estimate of materiality Factors Affecting Judgment