How are performance materiality and preliminary materiality related to each other?

The amount of performance materiality for any given segment or account is dependent upon the preliminary judgment about materiality. Ordinarily, performance materiality for any given segment or account would have to be lower than the preliminary judgment about materiality. In many cases, it will be considerably lower because of the possibility of misstatements in different accounts that, in total, cannot exceed the preliminary judgment about materiality.

The amount of preliminary judgment about materiality for any given account is dependent upon the performance materiality. Ordinarily, preliminary judgment about materiality for any given account would have to be lower than the performance materiality. In total, preliminary

judgment about materiality cannot exceed the performance materiality.

The amount of preliminary judgment about materiality for any given account is dependent upon the performance materiality. Ordinarily, preliminary judgment about materiality for any given account would have to be higher than the performance materiality. In total, preliminary judgment about materiality can exceed the performance materiality.

The amount of performance materiality for any given account is dependent upon the preliminary judgment about materiality. Ordinarily, performance materiality for any given account would have to be higher than the preliminary judgment about materiality. In total, performance materiality will exceed the preliminary judgment about materiality.