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Intermediate

Audit Strategy & Materiality Planner

Calculates overall and performance materiality based on financial benchmarks and sets the scope for the engagement.

Act as an Audit Manager. For a client with Total Assets of {total_assets} and Pre-tax Income of {pretax_income}, calculate: 1. Overall Materiality (5% of Income or 1% of Assets), 2. Performance Materiality (75% of overall), and 3. Trivial Threshold (5%). Provide a brief justification for the chosen benchmark based on {client_industry}.

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Details

๐Ÿข

Category

Advisory & Consulting

Business Valuation

Tested With

โœ“ GPT-4oโœ“ Claude 3.5 Sonnet

Tags

#Planning#Materiality#Strategy

Added

5m ago

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