Claytonhill Beverages Ltd. is 100-percent owned by Buzz Bottling. While the company has in the past been profitable, it incurred a loss for the year ended December 31, 2020. The parent company, Buzz Bottling, has indicated that if Claytonhill incurs another loss, it will put the subsidiary up for sale. In response, Claytonhill is looking to expand its market share and therefore its profitability by performing private labelling for a nationwide supermarket chain, ValueFoods Inc. Private labelling involves producing and packaging pop and other non-alcoholic beverages under the Value Foods label. However, in order to proceed with this endeavour, Claytonhill needs a packaging facility dedicated exclusively to co-packing. To finance this expansion, the company has applied to the Better Business Bank for financing. The bank has indicated that, before it will approve the loan application, it would like to see audited financial statements for 2020. It also wants to ensure the entity has a current ratio of 2:1. Claytonhill Beverages has provided you, its new auditor, with the draft (unaudited) financial statements in figure 4.10: FIGURE 4.10 Unaudited financial statements for Claytonhill Beverages Income statement for the year ended December 31, 2020 (partial) Revenue Sales $2,057,505 Cost of goods sold 1,445,450 Gross margin 612.055 Less: General and administration costs (including bonuses of $100,000) 775,899 Net loss before tax $(163,844) Balance sheet as at December 31, 2020 Assets Current assets Cash $ 179,825 Accounts receivable, net 64,475 Prepaid expenses 3,004 1,507,413 1,754.717 2,004,933 Inventory Total current assets Property, plant and equipment Land Building, net Office furniture and equipment, net Total property, plant and equipment Total assets 964.224 85.106 3,054,263 $ 4.808.980 Liabilities Current liabilities $ 799,255 44,875 Accounts payable Other accrued expenses Warranty provision Current portion long-term debt 9.456 25,000 Total current liabilities 878,586 Long-term liabilities Bank loans 2.200,000 Total long-term liabilities 2.200.000 Total liabilities 3,078,586 Equity Common shares 248,000 1,482,394 Retained earnings Total equity 1.730.394 Liabilities and equity $ 4.808.980 Calculate the three levels of materiality. $ Planning Materiality $ Performance Materiality $ Specific Materiality