You have been asked to calculate the level of materiality for the following organisation. The following information has been provided by the client based on the unaudited figures for the current year and the audited figures for the previous year. Calculate materiality and justify any professional judgements you must make when preparing your calculation.

Potential benchmark / base	% range for base calculation	Unaudited current year $000s	Audited prior year $000s
Revenue	0.5 - 1%	27,326	32,800
Net profit	5 - 10%	2,755	6,306
Total assets	0.5 - 1%	14,900	16,268
Total equity	1 - 2%	16,500	15,500