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Assume materiality for the financial statements as a whole is $100,000, and performance materiality for accounts receivable is set at $40,000. If the auditor finds

Assume materiality for the financial statements as a whole is $100,000, and performance materiality for accounts receivable is set at $40,000. If the auditor finds one receivable that is overstated by $55,000. how should the auditor manage this situation?

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