1. Which of the following statements are true? A. Setting materiality levels for contingent liabilities may be problematic for the auditor. B. Statutory disclosures need to be considered by the auditor in terms of their materiality. C. Auditor's performance materiality relates to the financial report as a whole. rather than an individual account or disclosure. D. When planning materiality for a net profit before tax is set close to 10%, it is likely that the risk of errors in the financial report is significant.

Please give me a detailed explanation, and let me know why B is wrong. I'll thumb you up then. Thanks