$\backslash$table$[[,,$Apollo Shoes,A$.5],[,$ENGAGEMENT MATERIALITY,Prepared by$],[,($Required for all engagements$),$Reviewed by$],[$CLIENT:$,$Apollo Shoes,,$],[$PERIOD ENDED:,December $31,2020,,]]$

This completed form must be provided to the engagement quality control reviewer in the planning stage of every audit. Please complete all the cells highlighted in yellow.

PLANNING MATERIALITY CALCULATION

Only if the current year net income $($loss$)($or other measure$)$ is significantly different from the entity's historical results would $2-$year averaging to obtain normalized net income $($loss$)($or other measure$)$ be appropriate.

PROFIT ORIENTED ENTITIES

Net income $($loss$)$

Plus $($minus$)$ unusual, non$-$recurring revenues and expenses, and extraordinary items.

ADJUSTED NET INCOME $($LOSS$)$

Current Year

$q,$

Adjusted net income $($loss$)$ multiplied by:

$5\%$

$0$

TOTAL ASSETS

Total assets multiplied by:

$1\%$

$0$

Current Year

TOTAL REVENUES

Plus $($minus$)$ unusual, non$-$recurring revenues

ADJUSTED REVENUES

A$-2$ PBC $2020$ Trial Balance

A$-3201910-$K

A$-4$ Engagement Letter

A$-5$ MaterialityMemo