<![CDATA[The determination of materiality is a critical decision in the audit process that significantly influences audit planning, execution, and evaluation, while relying heavily on auditors professional judgment. However, limited studies have examined how auditors apply professional judgment in determining materiality in practice. This study aims to analyze the application of professional judgment in determining financial statement audit materiality based on Auditing Standard 320. A descriptive qualitative approach was employed through semi-structured interviews, non-participatory observation, and documentation involving three auditors from KAP ZZ & Partners in South Jakarta selected using purposive sampling. The study found that professional judgment is applied from the initial stage of materiality determination, particularly in selecting benchmarks and establishing materiality thresholds. Materiality assessment was found to be dynamic and risk-based, integrating quantitative and qualitative considerations according to client characteristics, audit risk, and information sensitivity. Internal firm guidelines functioned as preliminary references; however, their implementation depended on auditors’ experience, understanding of auditing standards, and professional interpretation. Differences in interpretation among auditor levels also influenced materiality decisions. This study highlights that materiality determination is a multidimensional process shaped by technical, contextual, and professional factors, contributing to a deeper understanding of professional judgment in audit practice.]]>
