What term is used for materiality levels specific to particular transactions or balances?

The term that describes materiality levels specific to particular transactions or balances is specific materiality. This concept emphasizes that certain transactions or account balances may have different thresholds for what is considered material, depending on the context in which they are assessed. This can vary based on the nature of the transaction, its size, or its relevance to the financial statements as a whole.

Specific materiality is crucial for auditors because it allows them to focus on areas where the risk of misstatement is significant or where particular transactions could significantly impact the users of the financial statements. By applying specific materiality, auditors can design their procedures and evidence-gathering efforts to ensure that they adequately address the risks associated with those transactions or balances.

On the other hand, overall materiality refers to a broad threshold set for an entire set of financial statements, while performance materiality is a related concept that represents a lower level of materiality used to plan the audit and assess risk. General materiality is not a standard term in auditing terminology, which diminishes its relevance in this context.