1. When completing the testing for revenue, you noticed an error that overstates revenue and receivables by $25,000. Tolerable misstatement for this audit is $100,000 and trivial is $10,000. The staff on the audit, without discussing with the client, passes on the adjustment. As you work on the financial statements, you notice that the covenant on the loan requires the current ratio to be 1.25:1. If the above entry was made, the current ratio would fall below this. Do you make the entry? Why or why not? Detail your reasoning to the partner.