Amongst matters required to be considered by the auditor when planning the audit in accordance with the requirements of ISA 300 Planning an Audit of Financial Statements are those of materiality and the direction, supervision and review of the audit. Materiality is further the subject of ISA 320 Audit Materiality. Direction, supervision and review are considered in more detail within other Auditing Standards. Required: a) Explain the concept of materiality and how materiality is assessed when planning the audit. Your answer should include consideration of materiality at the overall financial statement level and in relation to individual account balances. (12) b) Explain the nature and significance of direction, supervision and review both in planning the audit and subsequently during the performance of the audit on a particular engagement. (8)