Note that the engagement team wants to be efficient with their audit and wanted to do perform a reasonableness analytic to determine some of the balances. Selena Meyer is the senior auditor for the audit. In planning the audit, Selena is attempting to develop expectations for planning analytical procedures based on the financial information for prior years and her knowledge of the business and the industry. ASSUME: Overall Materiality $774K Tolerable misstatement $387K, and deminimis $38.7K, note materiality was based on total revenue. 4) For her analytic she is trying to decide between overall materiality, tolerable materiality, or deminimis materiality to use to evaluate differences between your expectation and actual results, * When answering consider the relationship between the threshold level and how much evidence the auditor wants from this analytic. a. What phase of the audit would this Reasonabless analytic most likely be performed? (Planning, substantive, completion- Pick 1) Briefly Explan why (1 sentence) EX: Planning because ....... ANSWER: b. Decide which materiality level is appropriate for her to use for a reasonabless anaytic EX: Overall Materiality ANSWER: & explain why. ANSWER: EX: Overall Materiality because this is a detailed/high level analytic and this provides more/less precision/evidence. c