The following is the draft financial statement for ABC Ltd's year ended 30 Jun 2022. It is now Jul 2022. Your firm is preparing for the upcoming audit for 30 Jun 2022.

Overall Materiality (OM) is set as 2% of Net Asset. Performance Materiality (PM) is 85% of Overall Materiality. Clearly Trivial Threshold (CTT) is calculated at 7.5% of Overall Materiality.

Your firm's audit methodology is that any balance or class of transactions with a value below that of PM is out of scope for that engagement. No audit work is therefore required on this financial statement line item. However, regardless of the amount, revenue will be in scope for every audit.

Determine the various materiality levels for the 2022 audit engagement.

i) Identify whether to use the June 2021 (audited) or June 2022 (unaudited) figures for the calculations. Justify your choice. ii) Calculate the OM, PM and CTT iii) Identify the financial statement line items that are out of scope.