审计中的重要性水平是选择可以忽略或不需要强调的事项的基础。重要性是审计师确定可以忽略且不会导致财务报表错报的最大交易金额的标准(Budescu et al.， 2012)。重要性是指利益相关者的决策不受影响的程度。在Soundworld中，它们的业务操作是大级别的，因此可以将重要性级别设置为交易金额的4%。这意味着如果任何费用交易涉及的金额少于总费用的4%，那么该交易可以被视为不那么重要。
Materiality level in the audit is the base for selecting transaction that can be neglected or emphasis need not to given. Materiality is the standard for the auditor that decides maximum amount of transaction that can be neglected and which does not lead to misstatement of financial statements (Budescu et al., 2012). Materiality is that level up to which decisions of stakeholders cannot be affected. In case of Soundworld, their business operation is at large level therefore materiality level can be set at 4 % of transaction amount. That means if any expense transaction involve amount which is less than 4 % of total expenses then that transaction can be treated as less important.
4 % of transaction amount has been decided as materiality level because of following reasons:
Since business operation of Soundworld ltd has moderate level of amount in its transaction, therefore 4 % material level is justified.
Since risk assessment suggests that there is high risk of misstatement since some thefts of merchandise had taken place.
Management is concern about cash handling by staff therefore there shall be no materiality when it comes to cash management and detail evidences shall be collected while auditing cash balance.
Since internal control process of Soundworld suggests weakness because of incidences that had taken place during the year. Therefore materiality level shall be kept at low level i.e. 4 %.