You are evaluating audit results for assets in the audit of Rayan & co. You set the preliminary judgment about materiality at $100,000. The account balances, tolerable misstatement, and estimated overstatements in the accounts are shown next Account Cash Accounts receivable Inventory Other assets Total Account balance 100.000 2.400.000 5.000.000 500.000 8.000.000 Tolerable misstatement Estimate of total overstatements 10.000 60.000 100.000 30.000 200.000 2.000 40.000 ??? 24.000 ??? 1. Assume you tested inventory amounts totaling $2,000,000 and found $20,000 in overstatements. Ignoring sampling risk, what is your estimate of the total misstatement in inventory? 2. Based on the audit of the assets accounts and ignoring other accounts, are the overall financial statements acceptable? Explain. 3. What do you believe the auditor should do in the circumstances