The staff at Nguyen and Partners have completed the necessary necessary audit work for Manitoba Metal Fabricators. The partner responsible for the audit is now reviewing the audit file. She hes come across the Schedule of Unadjusted Diff erences and is considering the type of audit report to issue. Referring to figure 13.2, answer the following. December 31, 2020 Worksheet-Summary of identified misstatements (CORE) Objectives To document misstatements identified during the audit and to evaluate: . The efleet of identified misstatements on the audit. The effect of uncorrected misstatements, if any, on the financial statements. Performance materiality $ 42.500 Insignificant misstatements under $ 1010 need not be recorded below. Amount of Over (Under) Misstatement in the Financial Statements Circumstances F/S Corrected? W/P Description of Occurrence Assets |Liabilities Income Equity Disclosures Yes/No Ref Accrue audit fee for the year | Missed Accrual (15,000) (15,DID No Reverse revenue not earned Cut-Off Error 25,000 25.000 No Total identified misstatements during the audit] (15,000) Misstalements corrected by management Total uncorrected misstatements 25.000 (15,000) 10,000 Effect of income taxes on uncorrected misstatements Ellect of uncorrected misstatements from (15, DIX) prior periods Uncorrected misstatements to be carried (5,000) forward FIGURE 13.2 Summary of audit differences Sour free : Summary of identified misstatements, PEG Forms-Audits, Form 335. @ 2017 CPA Canada PEG If overall materiality for the engagement were set at $50,000, what type of audit report would be issued? Why