Account Cash 2. We also need to aggregate the individual misstatements (see below): Tolerable Misstatement $ 2,000 Misstatement $ 500 36,000 AR 50,000 Inventory 60,000 Total 39,000 75,500 planning ove 1. What options would an auditor have if the preliminary materiality is $75,000? $75,500> $75,000 Materially misstated F/S 1. Do more testing better estimates 2. Ask client to make adjustment they 3. Change report (qualified or adverse) typically ho