Bill's observations of the quantity of grain in the elevator fell ten percent below the client's records. Bill's attention was drawn to the discrepancy in the two measurements of what was in the elevator because, in his judgment, such a gap was significant enough to be material. The resulting difference between the inventory as reported by the client and the audited amount was enough to cause a significant drop in net income. Bill documented his findings in the working papers and an adjusting entry' for the difference.