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The following financial information was extracted from MCL’scurrent draft financial statements and those of the previousyear:?2017 ($M)2016 ($M)2015 ($M)Revenue220260240Total assets260280250Net Profit before tax19(3)17The car parts and accessories industry has been very competitiveand consumer demand appears to be slowing in anticipation of changewith electric and driverless cars coming into the market. Thecompany has recently restructured its operations to outsource itsNew Zealand manufacturing to a new factory in China from May2017.Required:a) Select an appropriate benchmark fordetermining the preliminary figure for materiality for MCL andbriefly explain your selection.b) Identify three risk factors andbriefly explain why they will affectaudit planning. Include in your explanation how such risks affectpreliminary overall materiality. (7 marks