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Following the Materiality Guidelines for Willis & Adams CPAs, complete all the necessary fields on Work Paper 3-7 and 3-8. For your Convenience, EarthWear Financial Statements have been included for reference. Balance Sheet. Income Statement. Cash Flows. Shareholders Investments. Five-Year Financial Summary.

Work Paper 3-7:

EARTHWEAR CLOTHIERS Planning Materiality December 31, 2016 (In thousands)				3-7 30-03-2016
		Unaudited
1. Benchmark Data		2016	2015
Sales / Revenue		$10,19,890	$9,50,484
Pre-tax income		$70,154	$35,757
Total assets		$3,89,428	$3,29,959
Materiality			$1,800
2. Establish Planning Materiality Level
Measurement Base		70,154
(Click to select) Sales / Revenue Pre-tax income Total assets
Percentage Applied*		4.5%
Planning Materiality		$3,157
Bases and Percentage Ranges:
Profit Oriented Entities
Pre-tax income	3 - 7%*		Please use this template in conjunction with Willis & Adams Materiality Guidelines. The materiality factors provided are guidelines only and should be used only as an aid as you use professional judgment to determine planning materiality.
Total Revenue	0.5 - 3%
Total Assets	0.25 - 2%
* For public companies, 5% is typically the maximum.
Not-for-Profit Entities
Total Revenue	0.5 - 3%
Total Assets	0.25- 2%
Mutual Fund Entities
Net Asset Value	3 - 5%

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