UK preliminary judgement about Materiality

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Hi Everyone,

How to determine the preliminary judgement about materiality for the company with net sales of £5,574,000 ; gross profit £2,120,00, total assets £3,628,000. How to support the level that is determined. And in case if the account balance is misstated what is the best way to explain it to the client.

Any help will be appreciated.
 

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