For this discussion, work with the members on your team assigned here to complete the Cloud 9 - Continuing Case at the end of chapter 3 in the text. Please identify the benchmark and % level that you are using to determine materiality and your materiality threshhold (see p. 3-11, Setting Materiality) and explain why you chose that benchmark. (Numbers are required for part a!). For part b., provide a specific discussion related to Accounts Receivable -- quantitative and qualitative factors. (See p. 3-13.) For part c., explain the impact of a decrease in performance materiality on your comments in part b.

Information and financial statements for Cloud 9 are in the Appendix of the text.