Auditing

Listen You are reviewing the results of the Firestone audit. These are the details of the summay of identified misstatements: Allowance for Doubtful Accounts: $60,000 misstatement (over) Sales Revenue: $10,000 misstatement (under) Total identified misstatements: $50,000 (impact on Assets, pre-tax income, and equity) Performance materiality was set at $60,000 REQUIRED: a) If overall materaility for the audit was set at $30,000, what type of audit report would be issued? (.5 marks) Why? (1.5 marks) b) If overall materiality for the audit was set at $75,000, what type of audit report would be issued? (.5 marks) Why? (1.5 marks)