Overall Planning Materiality

Based on the information provided below.

a. Explain why ABC's auditor chose Sales as a Measurement Benchmark in planning Wesly Co. Audit for the year 2018.

b. Explain why ABC's auditor chose Total Assets as a Measurement Benchmark in planning Wesly Co. Audit for the year 2018.

c. Explain why ABC's auditor chose Gross Profit as a Measurement Benchmark in planning Wesly Co. Audit for the year 2018.

Account	12/31/2018 Balance (projected)	12/31/2017 Balance (audited)	12/31/2016 Balance (audited)
Sales	$ 65,000,000	$ 30,000,000	$ 5,000,000
Total Assets	$ 40,000,000	35,000,000	$ 25,000,000
Gross Profit	25,000,000	$ 10,000,000	$ 1,000,000
Pre-Tax Income	(37,000,000)	(55,000,000)	$ (29,845,000)