In your 2013 audit of B. Industries, you found several issues that you think may indicate possible to the company's books. These issues are listed below. Management does not want to make any adjustment to the books, as they prefer not to revisits old records once a fiscal year has ended. Planning materiality for the company's audit was $100,000, determined by computing 5% of expected income before taxes. Prior to any adjustments, actual income before taxes on B Industrial financial statement is $1,652,867. Possible Adjustments : 1. Several credit memos that were processed and recorded after year-end relate to sales and Account Receivable for 2013. These total $ 23,529. 2. Inventory cutoff test indicate that $22,357 of inventory received on December30, 2013, was recorded as purchase and Account Payable 2014. These items were included in the inventory count at year end and were therefore included in ending inventory. 3. Inventory cutoff test also indicate that several sales invoices were recorded in 2013 for goods that were shipped in early 2014. The goods were not included in inventory, but were set aside in a separate shipping area. The total amount of these shipment was $ 36.022. (Ignore COGS for this item). The company wrote several checks at the end of 2013 for Account Payable that were held and not mailed until January 15, 2014. These total $48.336. Recorded cash and Account Payable at December 31, 2,356,553 and $ 2,666,290 respectively. 5. The company has not established an allowance for obsolescence of inventories. Your tests indicate that such an allowance is appropriate in an amount somewhere between $20,000 and $ 40,000. Required: a. Determine the adjustment that you believe must be made for B Industrie's financial statement to be fairly presented. Include the amounts and accounts affected by cash adjustment. b. Why may B Industries' management resist making these adjustment?. C. Explain what you consider the most positive way of approaching management personnel to convince them to make your proposed changes. d. Describe tour responsibilities related to unadjusted misstatements that management has determined are immaterial individually and in the aggregate. e. Assuming B Industries is a publicly listed company, describe how the noted adjustment might impact your audit report on internal control over financial reporting. 4