CASE REQUIREMENTS

$1.($a$)$ Based on information contained in the cases and an analysis of the balance sheet and income statement

for The Bargain Cart, suggest three potential bases to be used for establishing materiality and provide

rationale for why financial statement users might emphasize the suggested bases. $($b$)$ Provide a percentage

range for each base that you believe should be used in establishing planning materiality for financial

statements as a whole for The Bargain Cart. and provide examples of qualitative factors that the auditor

should usually consider when deciding on the materiality percentage to use.