If you have the following information :

Total sample in A/R = 25,000

Net misstatements in the sample for A/R=3000

Total recorded population for A/R= 110,000

Direct projection in inventory =14000

Sampling error in A/R= 1300

Sampling error in inventory= 800

Preliminary materiality = 50,000

High materiality = 65,000

Required :

In this case the misstatement amount in both A/ R and inventory is :

a)material

b)immaterial

c)high material