Use of Benchmarks in Determining Materiality for the Financial Statements as a Whole Determining materiality involves the exercise of professional judgment. A percentage is often applied to a chosen benchmark as a starting point in determining materiality for the financial statements as a whole. Factors that may affect the identification of an appropriate benchmark include the following: • The elements of the financial statements • Whether items exist on which the attention of the users of the particular entity’s financial statements tends to be focused • The nature of the entity, where the entity is in its life cycle, and the industry and economic environment in which the entity operates • The entity’s ownership structure and the way it is financed • The relative volatility of the benchmark 请翻译成中文