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 auditors 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 Item #	Inventory Name	Quantity	Original Unit Cost	Total Stock Value ($)	Last Sales (Date)	Last Sales Price ($)	Impairment Recognised	Further Impairment Needed? (Y/N)	Impairment Value ($)	Comments
10005	Office Chair (Model A)	60	100	$6,000	30/12/2020	50	$1000
10011	Adjustable Office Table (Model F)	10	200	$2,000	01/06/2021	250

	A.	The inventory account is overstated by $2000.
	B.	The inventory account is overstated by $3000.
	C.	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
	F.	A and C
	G.	B and C
	H.	B, C and D