Chocolates From Heaven Inc. (CFHI) produces small batch artisanal chocolate. It is a private company owned by two equal shareholders, David Chang and Sharjeel Ahmed. They started CHFI in 1996 and have grown a successful business. They intend to sell the business and already have an interested buyer. Collateral for the loan is inventory and accounts receivable. Audited financial statements are a requirement of the loan agreement. Audit Class LLP has been appointed the new auditor this year. The previous auditor was a small local firm and the owner retired last year. The following are extracts from the draft financial statements for the year ended 2020: 2020 2018 (unaudited) (unaudited) Cash & Short-Term Securities 297 $ 145,768 Accounts Receivable 411,662 123,499 Inventory 104,974 47,424 Prepaid expenses 55.678 2,500 Plant and Equipment 1,445,260 1,111,739 2020 2018 (unaudited) (unaudited Sales $2,469,974 $1,481,984 Cost of sales 1 259.687 711,353 Gross Margin 1,210,287 770,631 Expenses: Operating expenses 861,725 565,643 Loss due to fire 53.478 Operating Income 295,084 204,988 Other expenses(income) Interest expenses 8,000 12,000 Net Income Before Income Taxes 287,084 192,988 Income tax expense 43,063 28,948 Net Income $ 244,021 $ 164,040 REQUIRED You are the audit manager assigned to CFHI and you are performing the materiality assessment. a) Who are the users and why will they be using the audited financial statements? b) Based on case facts, determine an appropriate benchmark for overall materiality. Provide an explanation of your choice. C) Calculate the performance materiality based on your chosen benchmark. Why is there a difference between overall materiality and performance materiality