The article examines the theoretical and practical aspects of determining the level of materiality in auditing under the conditions of a modern economy. It substantiates the key role of materiality as one of the fundamental elements of auditing, which has a direct impact on the planning and execution of audit procedures, as well as on the formation of the auditor’s professional judgment. Particular attention is given to the relationship between the level of materiality and audit risk in the context of the requirements of International Standards on Auditing.

The study analyzes both quantitative and qualitative approaches used in determining materiality, highlighting the specifics of selecting benchmark indicators and establishing threshold values. Based on the analysis, the main challenges encountered in audit practice are identified, including the limitations of formalized methods, the instability of financial indicators, the high degree of subjectivity in professional judgment, insufficient integration with risk assessment, as well as the dynamic nature of materiality.

Special attention is paid to the specifics of applying the concept of materiality in developing economies, particularly in the Republic of Uzbekistan, where the role of auditing is increasing in the context of ongoing economic reforms and the growing requirements for transparency in financial reporting.