Part II: (1,200 word minimum for parts 2 and 3 combined, both are due on 2. Establish materiality thresholds for the audit engagement. (Pretend that you are auditing the assigned company.) The assessment should begin with a determination of planning materiality for the overall financial statement audit, as well as tolerable misstatement for the specific account group assigned to you. Be sure to explain how you chose your selected materiality thresholds. Explain why you used your chosen base for establishing materiality. 3. Summarize the accounting issues involved in your assigned accounts, with specific emphasis on any difficult rules, estimates, or interpretations. Then provide a detailed analysis of the inherent risk factors relevant to the financial statement assertions for the assigned accounts. When discussing each inherent risk factor, please assess the magnitude of the risk factor as high, medium, or low and explain your chosen designation.

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