In the audit of Tottenham Company Ltd (Tottenham), the auditor has collected the accounts receivables aged trial balance with details as follows (all amounts are in $): Customer Balance (30/6/2017) Aging, based on invoice date 0-30 days 31-60 days 61-90 days 91-120 days 121 days and above Big Brothers 14,000 14,000 Homes Ltd 32,400 3,400 29,000 K Block 8,600 8,600 Christ 7,000 7,000 Mountain Ltd 8,650 8,650 Crown Co 9,000 9,000 Hung Co, Ltd 16,000 2,000 3,000 11,000 My Bag Ltd 1,500 1,500 Wyndham 22,000 22,000 Total 119,150 58,900 11,650 19,600 29,000 0 The client has provided the auditor with its policy about the allowance for doubtful debts as follows: Age of accounts receivable, based on invoice date Percentage to make provision, based on the outstanding balance on the balance sheet date 0-30 days 0% 31-60 days 2% 61-90 days 5% 91-120 days 10% 121 days and above 100%

Required: (a) As the auditor of Tottenham, calculate the total amount of allowance for doubtful debt that the entity should have made (show your workings). State one relevant assertion that you would like to confirm by doing this.

(b) Assuming the client is making and presenting the same amount of allowance for doubtful debt on the current financial statement. However, when you check the clients classification of age based on the aged trial balance, you discover that the amount of $22,000 owed by Wyndham should belong to the 61-90 days aging category based on the related invoice dates. You have discussed this issue with the client and they agree to your finding. Advise (with reasons) the appropriate type of auditors opinion if your auditor-in-charge has set a materiality level of $1,000 for accounts receivable, given that there is no other misstatement discovered?