Review Exhibits 1 and 2; audit memos G-3 and G-4; and audit schedules G-5, G-6 and G-7. Based on your review, answer each of the following questions:
[a] Why are different materiality bases considered when determining planning materiality?
[b] Why are different materiality thresholds relevant for different audit engagements?
[c] Why is the materiality base that results in the smallest threshold generally used for planning purposes?
[d] Why is the risk of management fraud considered when determining performance materiality?
[e] Why might an auditor not use the same performance materiality amount or percentage of account balance for all financial statement accounts?
[f] Why does the combined total of individual account performance materiality commonly exceed the estimate of planning materiality?
[g] Why might certain trial balance amounts be projected when considering planning materiality?
[1] Based on your review of the Exhibits (1 and 2) and audit memos (G-3 and G-4), complete audit schedules G-5, G-6 and G-7.