Factor 2

Factor (applied to planning materiality to arrive at tolerable misstatement when “lower level of planning materiality” is chosen).
Apply a factor necessary to achieve the desired level of Performance Materiality/Tolerable Misstatement for the item. This is based on auditor judgment and is a combined factor to adjust Planning Materiality at the financial statement level to Performance Materiality/Tolerable Misstatement for the item.
If desired, Planning Materiality for the item can be documented in the Comment icon at the end of the applicable row.