Q1) ISA 320 Materiality in planning and performing an audit deal with the auditors responsibility to apply the concept of materiality in planning and performing an audit of financial statements. Materiality has both qualitative and quantitative aspects. Explain what is meant by performance materiality and contrast it with materiality for the financial statements as a whole. Give two examples of qualitative factors which may cause misstatements of quantitatively small amounts to be material.

Q2)Describe various methods of sample selection for audit.