WILL The management of Zorro Traders Limited, an electronics retailer, has reported its income for the first two quarters of 2019 as follows: Quarter 1 = $3,200,000 Quarter 2 = $3,800,000 As the current auditor of the company, you are assigned the responsibility of estimating the overall establishing materiality for Zorro Traders. The following points are relevant . Based on historical trends the Cient has a 4% decline in profits from the 2nd quarter to the 3rd quarter Howeveryou are aware that Quarter 4 may well achieve an increase of 28% over Quarter 3. The overall matenality is 25% of annual profit before tax . All figures are before tax Required: Determine the amount ($) of materiality for the combined Quarters 3 and 4 based on the preliminary amounts in relation to Quarters 1 and 2 of the audit and the overall materiality rate of 2.5% (10 marks) WILL The management of Zorro Traders Limited, an electronics retailer, has reported its income for the first two quarters of 2019 as follows: Quarter 1 = $3,200,000 Quarter 2 = $3,800,000 As the current auditor of the company, you are assigned the responsibility of estimating the overall establishing materiality for Zorro Traders. The following points are relevant . Based on historical trends the Cient has a 4% decline in profits from the 2nd quarter to the 3rd quarter Howeveryou are aware that Quarter 4 may well achieve an increase of 28% over Quarter 3. The overall matenality is 25% of annual profit before tax . All figures are before tax Required: Determine the amount ($) of materiality for the combined Quarters 3 and 4 based on the preliminary amounts in relation to Quarters 1 and 2 of the audit and the overall materiality rate of 2.5% (10 marks)