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During an audit, an audit is required to establish performance materiality for several balance sheet accounts. Explain/justify how you would choose the performance materiality amounts

During an audit, an audit is required to establish performance materiality for several balance sheet accounts. Explain/justify how you would choose the performance materiality amounts for each of the following accounts: (a) accounts receivable, (b) allowance for bad debt, (c) accounts payable.

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Performance materiality is an amount but the extent of overall materiality and is reduced so as to permit for the danger that there could also be several smaller errors or omissions that havent been i... blur-text-image

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