plz explain!!!!!!

Vatsalya Bhardwaj (Final Student) (427 Points)

22 August 2010  
this is my query from auditing SA 320- materiality in planning and performing an audit...
 
plz explain the performance materiality concept
 
for purpose of the SA's, performance materiality means the amount or amounts set by the auditor at less than materiality for the financial atatements as a whole to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds nateriality for the financial statements as a whole. if applicable, performance materiality also refers to the amount or amounts set by the auditor at less than the materiality level or levels for particular classes of transactions, account balances or disclosures.