The correct answers are: Auditors must consider all known factors at the current date; The risk of the current year audit may be different to the prior year.

Who is on the audit team should not affect materiality levels. Materiality is linked to risk. Inherent and control risk are affected by the client, and detection risk is affected by the auditors, but should not be affected by the audit team itself, which should be capable of carrying out a quality audit.

The fact that the reported figures are unlikely to be the same to the last penny is irrelevant in the fact that the auditors must reappraise materiality annually - even if the figures were the same, materiality might be different, as it is a matter of audit judgement with regard to audit risk, not simply a matter of percentages of the financial statements, although such percentages can be a helpful, indicative tool for auditors.