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3. Justify/Support Your Level of Planning Materiality State the factors that you considered to determine the appropriate measurement base and percentage to determine planning materiality.

3. Justify/Support Your Level of Planning Materiality State the factors that you considered to determine the appropriate measurement base and percentage to determine planning materiality.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I just need the answer for #3 Justify/Support your level of planning materiality the measurement base and the percentage

December 31, 2019 1/23/2022 (In thousands) Unaudited 1. Benchmark Data 2019 2018 Sales / Revenue Pre-tax income Total assets Materiality $1,019,890 $70,154 $389,428 $950,484 $35,757 $329,959 $1,800 2. Establish Planning Materiality Level Measurement Base 70,154 Pre-tax income Percentage Applied" 4.5% Planning Materiality $3,157 Bases and Percentage Ranges: Profit Oriented Entties Pre-tax income 3- 7%* Please use this template in conjunction with Willis & Adams Materiality Guidelines. The materiality factors provided are guidelines only and should be "Forpublio oompanies, 5is typioal the maximem. used only as an aid as you use professional judgment to determine planning materiality. Total Revenue 0.5- 3% Total Assets 0.25 - 2% Not-for-Profit Enties 0.5- 3% Total Revenue Total Assets Mutual Fund Entties 0.25- 2% Net Asset Value 3-5% 3. Justify/Support Your Level of Planning Materiality State the factors that you considered to determine the appropriate measurement base and percentage to determine planning materiality. Measurement Base: Enter your response here Percentage: Enter your response here
Transcribed Image Text:December 31, 2019 1/23/2022 (In thousands) Unaudited 1. Benchmark Data 2019 2018 Sales / Revenue Pre-tax income Total assets Materiality $1,019,890 $70,154 $389,428 $950,484 $35,757 $329,959 $1,800 2. Establish Planning Materiality Level Measurement Base 70,154 Pre-tax income Percentage Applied" 4.5% Planning Materiality $3,157 Bases and Percentage Ranges: Profit Oriented Entties Pre-tax income 3- 7%* Please use this template in conjunction with Willis & Adams Materiality Guidelines. The materiality factors provided are guidelines only and should be "Forpublio oompanies, 5is typioal the maximem. used only as an aid as you use professional judgment to determine planning materiality. Total Revenue 0.5- 3% Total Assets 0.25 - 2% Not-for-Profit Enties 0.5- 3% Total Revenue Total Assets Mutual Fund Entties 0.25- 2% Net Asset Value 3-5% 3. Justify/Support Your Level of Planning Materiality State the factors that you considered to determine the appropriate measurement base and percentage to determine planning materiality. Measurement Base: Enter your response here Percentage: Enter your response here
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