7) What does picking a larger or smaller % for materiality mean to our detection risk? (Example if you picked 10% or 5% does that mean Detection risk is high or low.) (See slides for guidance on how to answer this question.) [Click on one of the boxes below to select your answer, check only one box.] O a. Picked a Larger % for materiality, this means Detection Risk is higher. O b. Picked a Smaller % for materiality, this means Detection Risk is lower. 8) Using the financial statements and the answers to the questions above calculate materiality for our audit of Technology Inc. (Calculate Overall materiality, Tolerable Misstatement (use 50% or 75% of overall Materiality), and Deminimis Materiality (use 5% or 10%). (Show your calculation and the number you calculated.) EX: Benchmark %(1%) * Assets ($25m)= $250K (Overall Materiality) EX:-Tolerable Misstatement = 50% * Overall Materiality [$250K* 50% = $125k] EX: Deminimis Materiality = 5% of Tolerable Misstatement [$125K * .05 = $6,250). a. Overall Materiality=_ b. Tolerable Misstatement= c. Deminimis Materiality= 9) Look at the Income statements and answer the following questions: [Click on one of the boxes below to select your answer, check only one box.] - i. Are any accounts larger or smaller than Overall Materiality? XIA) YES B) No - ii. What does this mean do we have to audit all of these accounts? A) YES B) No - ili. Are those accounts significant? A) YES ( B) No