An auditor encountered the following situation in her audit. Her initial estimate of preliminary materiality was $110,000 and her firm permits a performance materiality of double this amount. Given her audit findings (below) what steps, if any are required, should she take in responding to these findings and why? Cash Accounts Receivable Account Performance Audit Balance Materiality Errors $10 m $10,000 $5,000 $90,00 $10 m $100,000 $20,00 $10 m $100,000 $10 m $10,000 $5,000 0 Inventory Building