Calculate the materiality level of each of the client's below:

Client No.Total Assets Total Revenues Materiality Level

A P6 million P7 million ?

B P50 million P65 million ?

C P500 million P900 million ?

D P1.4 billion P1.5 billion ?

Based on the above overall materiality levels, the auditor may consider the overall engagement risk

and the history of booked audit adjustments in determining the percentage for performance

materiality. Assuming based on the auditor's judgment, the following rationale and percentages

have been determined:

Rationale for higher performance materiality Rationale for lower performance materiality

Overall engagement risk Low High

History of booked audit

adjustment Limited to none Frequent

Fraud Risk Low High

Threshold to adopt based on 25% lower than overall materiality 50% lower than overall materiality

professional judgment and

understanding of the entity

Can you compute the Performance materiality for the four clients?