Breather filter

When i fit my K&N induction kit, is it essential to fit a breather filter aswell?

What is the small round hole for on the bottom of the K&N?

Does the induction kit sound just as loud as when running no airfilter at all?
 
There should be a pipe that comes with the K&N that connects from the breather in the top of the rocker cover and connects to that hole in the bottom of the K&N so you don't need the breather. its not quite as throaty but still pretty good compared to with out the filter at all just looses the slight gurgle when reving
 
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