Chapter 03 Exercise 59 LO 3-3\ Materiality is ultimately a matter of professional judgment. However, during the planning process auditors make a calculation of preliminary materiality based on a benchmark or rule of thumb.\ Required:\ FastFix is an online retail company that sells a variety of products including groceries, clothing, toys, and home decor and promises delivery within 5 days. The table below has select financial data from 2022, 2023, and 2024.\ FastFix Select Financial Data (in million)\ \\\\table[[Net revenues,2022,2023,2024],[Profit before taxes,

$121,776

,

$160,223

,

$285,052

Materiality is ultimately a matter of professional judgment. However, during the planning process auditors make a calculation of preliminary materiality based on a benchmark or rule of thumb. Required: FastFix is an online retail company that sells a variety of products including groceries, clothing, toys, and home decor and promises delivery within 5 days. The table below has select financial data from 2022, 2023, and 2024. FastFix Select Financial Data (in million) a. Using this information, calculate overall preliminary materiality for 2022,2023 , and 2024 ising each of the rules of thumb below: - 5% of profit before tax - 1/2% of revenues - 1% of total assets b. Which method for calculating materiality is most common for profit-based companies such as FastFix