URGENT** Need help Commenting on issues discussed during the meeting with client's audit committee and assess the impact on auditing the client firm. Please and thank you !

2. In one of the meetings at the beginning of the audit, the engagement partner and the client's audit committee discussed the materiality and the overall audit plan. The audit committee proposed that setting the planning materiality at $12,480,500 seems to be reasonable. The engagement partner suggests that the current year audit fee be fixed at $1,250,000, which is subjected to upward adjustment if unusual or unexpected issues occurred. Some of the audit committee members questioned the proposed audit fee, since it was $50,000 higher than the fee paid for the previous year's audit as performed by another auditing firm. After further discussion and consultation with the CEO, the audit committee members reluctantly agreed to the proposed audit fee arrangement. Please comment on the issues discussed during the meeting with the client's audit committee and assess the impact on auditing the client firm