Requirement 2 Diamond's Audit Committee concluded that a "continuity" payment made to growers in August 2010 of $20 million and a "momentum" payment made to growers in August/September 2011 of $60 million were not accounted for in the correct periods. (a) Assume that a junior auditor of Deloitte's audit team has proposed that given the size of "the total liabilities and stockholders' equity" of Diamond of $1.226 billion, an adjustment of $20 million of grower payables is immaterial (1.63 percent) for fiscal 2010. Would you agree with the junior auditor? Why? [Note: Assume that Diamond sold all walnuts purchased during the fiscal year in that year.] (b) How would you determine whether the effect of recording the $20 million "continuity" payments and $60 million "momentum" payments in incorrect accounting periods was material on Diamond's financial statements for fiscal 201 1? Explain and provide an appropriate explanation and supporting calculations, if any