Distinguish between the terms performance materiality and preliminary judgment about materiality. How are they related to each other?
TASK 1. What is meant by setting a preliminary judgment about materiality? Identify the mostimportant factors affecting the preliminary judgment.2. Distinguish between the terms performance materiality and preliminary judgment aboutmateriality. How are they related to each other?3. Explain the difference between known and likely misstatements. Assume the auditortests a sample of $100,000 of inventory and […]