Solution-Set performance materiality for the three relevant

Set performance materiality for the three relevant accounts

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Reference no: EM133184610

Question - Assume a company with the following balance sheet accounts:

Account	Amount
Cash	$10,000
Fixed assets	60,000
	70,000
Long-term loans	30,000
M. Johnson, Proprietor	40,000
	$70,000

You are concerned only about overstatements of owner's equity. Set performance materiality for the three relevant accounts such that the preliminary judgment about materiality does not exceed $5 000. Justify your answer.

Reference no: EM133184610

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Set performance materiality for the three relevant accounts

Reference no: EM133184610

Reference no: EM133184610

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