QUESTION 4 When auditing a furniture retailer, an auditor performed a price test over a batch of office chairs. The working paper (incomplete) is shown below. The clearly trivial threshold is $1.000 and the performance materiality is $100,000. The client has recognised a $1000 impairment for the office chair (Model A). What is the auditor's conclusion and how could the matter be followed up? Furniture N Things Ltd Inventory Impairment 30/6/2021 Schedule C-20 Prepared by: Allen Student Date: 31/07/2021 Reviewed by: Audit Procedure: Obtained the unit cost and total stock value from the client inventory list as of 30/06/2021. Obtained the selling prices and corresponding dates after year-end for these items from the client sales listing for the year ended 30/06/2021 to 31/07/2021. Inventory inventory Name Quantity original Total Last Sales Last Impairment further impairment Comments tem Date) Sales Recognised impairment Value (5) Value (5) Price (5) Needed? (Y/N) 10005 Office Chair (Model A) 60 100 $6,000 30/12/202050 $1000 10011 Adjustable Office Table ho 200 $2,000 01/06/2021250 (Model) A The inventory account is overstated by $2000 B. The inventory account is overstated by $3000 The auditor will include the overstatement in Summary of Misstatements D. The auditor will not request any accounting adjustment as the misstatement is below performance materiality E A and D Unit Cost Stock F. and GB and HB, C and D