Question 2 (10 Marks) You are the manager responsible for the audit of Kapapreko Co. The draft consolidated financial statements for the year ended 31 March 2002 show revenue of GH84.4 million (2001 was GH43.6 million), profit before taxation of GHe3.6 million (2001 was GHe4.4 million) and total assets of GH61.4 million (2001 was GHe 46.8 million). In March 2002, the management board announced plans to cease offering 'home delivery' services from the end of the month. These sales amounted to GH1.2 million for the year to 31 March 2002 (2001 was GH 1.6 million). A provision of GHe 0.4 million has been made at 31 March 2002 for the compensation of redundant employees (mainly drivers). As an auditor, your criteria for assessing materiality is based on the following: Required: Compute and comment on the materiality of the two issues raised as regards: (i) Home delivery sales (ii) Provisions