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In this session, Professor Forehead introduces performance materiality, also known as tolerable misstatement. Before delving into this topic, it is important to understand the concept of materiality on financial statements as a whole. This judgment is also referred to as preliminary materiality judgment. It is recommended to watch the previous recording on materiality before proceeding. The focus of this session is to allocate this judgment to various accounts. Starting with the big picture, the prior session set materiality for the entire financial statement.