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Carely Genao
4/6/2017
Individual Assignment 3
7-33 a. Use the 3 common benchmarks for marketing material judgements (net income,
total assets, and net sales) to establish materiality for the financial statements over all.
Per the text, materiality is determined/judged by the difference between audited and unaudited
amounts. In respect of total assets and net sales, if the difference is less than one percent, then it
is not material. If it is between one and 5 percent it is likely material, and anything over 1.5
percent is always considered material. In the case of net income, anything less than five percent
is not considered material, five to ten percent is likely to be material, and anything over ten
percent is always material.
After some simple calculation, the difference between unaudited and audited total assets is
