What is the amount of performance materiality germane

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Reference no: EM133612303

Question: The inventory of Starblocks's roasted beans in 2023 is $69.3 million for four locations and Urbana, Illinois has $13.9 million in inventory. Your audit manager notes that planning materiality is set at 1.0% of revenue, and performance materiality for inventory is 75% of planning materiality for understatements and 50% of planning materiality for overstatements. Based on prior audits, the expected misstatement rate is 0.25% and a 90% confidence level is desired. What is the amount of performance materiality germane to the Urbana, IL roasted coffee bean inventory?

Reference no: EM133612303

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