Question: Problem Two Problem two consists of questions on materiality: (a) Briefly define materiality by the Financial Accounting Standards Board (FASB) under the FASB Concept Statements.

Problem Two Problem two consists of questions on materiality:

(a) Briefly define materiality by the Financial Accounting Standards Board (FASB) under the FASB Concept Statements.

(b) What is the independent auditors' concept of "performance materiality" under the AICPA Statements on Auditing Standards and how is that distinguished from materiality for the statements as a whole?

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