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How you arrived at this dollar amount for the preliminary

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Discussion:

Discuss how you arrived at this dollar amount for the preliminary judgment about materiality. That is, how did you combine the qualitative and quantitative considerations to arrive at this dollar amount?

Based on three important bases: income before tax, assets and stockholders' equity. Because when looking at the financial statements, there are a lot of inappropriate increase (such as inventory store 3 or sales in store 3).

This discussion does not clearly explain how qualitative and quantitative considerations were combine to determine a level of materiality.

Reference no: EM132344346

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