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Question on materiality If a misstatement amount goes above performance materiality allocated to the account,...

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Accounting

Question on materiality

If a misstatement amount goes above performance materiality allocated to the account, what does that mean?

for example my problem has these accounts with misstatements of

1. accounts payable - $300,000

2. inventory - $315,000

3. equipment - $200,000

If each account has a $305,000 performance materiality, does this mean that the misstatement for each account is material or immaterial? Like even though accounts payable is close to the $305,000 PM amount would this still be material? because it technically does fall under the PM allocated to it.

Please answer based purely off definition please like I'm 5 years old since this is just for my audit class. Thanks!

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