Calculate an amount for planning materiality

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Question - The pretax income for the first two quarters is reasonable with a net profit margin falling between 8-10% of sales. Based on prior years, pretax income for the third quarter usually holds steady relative to the second quarter, but pretax income for the fourth quarter typically decreases by 20% over the third quarter as governments reach the end of their spending budgets.

Analysis and evaluation: Discuss the factors to consider when determining planning materiality for MSI. Calculate an amount for planning materiality for the audit of fiscal year-end June 30, 2023.

Reference no: EM132855139

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