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Calculate materiality for the client, assuming that it is a profit-oriented company and moderate audit risk. Explain why you chose the base you did and

Calculate materiality for the client, assuming that it is a profit-oriented company and moderate audit risk. Explain why you chose the base you did and why you chose the percentage. You may use guidelines from the textbook or the case study and should refer to the specific guidelines you used in your answer.

Current Year Prior Year

Sales/revenue (net) 30,381,954 26,290,518

Expenses 7,263,786 6,519,376

Gross Margin 8,378,660 7,280,887

Pre-tax Income 1,114,873 761,510

Current Assets 18,993,546 16,966,273

Current Liabilities 8,221,991 6,810,164

Total Assets 19,679,541 17,670,625

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