Question: Once a company conducts its internal audits, an outside auditor is often engaged to review and determine, with reasonable assurance, if the company has complied with the relevant standards and appropriate requirements. At the start of every audit, auditors need to begin the engagement planning process as well as properly plan the audit, evaluate the integrity of management, and determine materiality. Discuss and evaluate the concept of materiality in the engagement planning process. Discuss how materiality translates to a company's financial-statement assertions and account balance assertions.