You are planning the audit of Devon Energys 2021 financial statements. The unaudited statements presented to you at the beginning of the audit are provided below (all numbers in the financial statements are in millions of US Dollars). Your other audits in the energy industry use pre-tax income as the base for calculating overall materiality and you decide to do the same in this audit. Devon is considered a higher-risk client. Based on this information, answer the following questions. Provide justification for all calculations.

13a. Calculate Overall/Planning Materiality:

13b. Calculate tolerable misstatement/performance materiality for the three following accounts:

Total Revenue:

Other Current Assets (e.g., Prepaid Assets):

Cash and Cash Equivalents:

13c. During the audit, you identify $75 million in misstatements in the revenue account, $33 million in misstatements in other current assets, and $39 million in misstatements in cash. Based on these, please evaluate these identified errors in respect to your materiality calculations above. If no adjustments are needed, state why. If adjustments are needed, recommend which account(s) should be corrected, and how much.

DEVON ENERGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS See accompanying notes to consolidated financial statements. DEVON ENERGY CORPORATION AND SUBSIDIARIES DEVON ENERGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS See accompanying notes to consolidated financial statements. DEVON ENERGY CORPORATION AND SUBSIDIARIES