10 points The management of Zorro Traders Limited, an electronica retailer, has reported to income for the first two quarters of 2019 as follows: Quarter 1 w $3,200,000 Quarter 2 53,600,000 As the current auditor of the company, you are assigned the responsibility of estimating the overall establishing materialty for Zorro Traders. The following points are relevant Based on historical trends the client has a 4% decline in profits from the 2nd quarter to the 3rd quarter . However, you are aware that Quarter 4 may well achieve an increase of 28 over Quarter The overall materiality is 2.5% of annual profit before tax All figures we before tax Required: Determine the amount (5) of materially for the combined Quarters 3 and 4, based on the preliminary amounts in relation to Quarters 1 and 2 of the audit and the overall materialty rate of 25% 10 points The management of Zorro Traders Limited, an electronica retailer, has reported to income for the first two quarters of 2019 as follows: Quarter 1 w $3,200,000 Quarter 2 53,600,000 As the current auditor of the company, you are assigned the responsibility of estimating the overall establishing materialty for Zorro Traders. The following points are relevant Based on historical trends the client has a 4% decline in profits from the 2nd quarter to the 3rd quarter . However, you are aware that Quarter 4 may well achieve an increase of 28 over Quarter The overall materiality is 2.5% of annual profit before tax All figures we before tax Required: Determine the amount (5) of materially for the combined Quarters 3 and 4, based on the preliminary amounts in relation to Quarters 1 and 2 of the audit and the overall materialty rate of 25%