Evaluation of Misstatements Identified during the audit (CAS 540)

Example:

Overall materiality=40,000

Known(or Factual) misstatement = 25,000

projected(or extraploated) misstatements=25,000

estimated(or judgement) misstatement=15,000

The above is a suggested method of accumulating misstatements

Based on the misstatements above alone what is the appropriate audit report?

What are the auditor's opinion?

change materality?

change engagement type?

perform more audit procedures?

adjust balance?

resign?

modify the report?