1. Which of the following statements is correct regarding the auditors determination of materiality?

a.) The amount used for the planning should equal that used for evaluation.

b.) The auditors planning level of materiality may be disaggregated into smaller "tolerable Misstatements" for the various accounts.

c.) Auditors may use various rules of thumb to arrive at an evaluation level of materiality, but not for determining the planning level of materiality.

d.) The planning level of materiality should normally be the larger of the amount considered for the balance sheet versus the income statement.