Current Attempt in Progress

Mark Jackson is the manager on the audit team for a new client, Central Companies $($CC$).$ CC is a home appliance and

lighting retailer specializing in high$-$end kitchen equipment and specialty light fixtures. The client engaged Mark's

accounting firm in August $2025$ in preparation for the December $31,2025,$ audit. From January $2025$ onward, CC has

consistently paid its inventory suppliers late, well past the suppliers' agreed$-$upon credit terms. Some suppliers are even

demanding cash on delivery from CC and no longer extending credit. Mark is also aware from his review of

correspondence between CC and its bank that the company has been experiencing cash flow problems since $2024.$

Discuss how this information impacts Mark's assessment of planning materiality for CC$.$