You are evaluating audit results for assets in the audit of Bradleys Manufacturing. You set the preliminary judgment about materiality at $75,000. The account balances, performance materiality, and estimated overstatements in the accounts are shown below. Read the requirements. Requirement a. Assume you tested inventory amounts totaling $800,000 and found $12,000 in overstatements. Ignoring sampling risk, what is your estimate of the total misstatement in inventory? (Do not round intermediary calculations. Only round the amount you enter in the input field to the nearest dollar.) Requirement b. Based on the audit of the assets accounts and ignoring other accounts, are the overall financial statements acceptable? Explain. Start by identifying the estimate of the total overstatement based on the audit of the assets accounts and ignoring other accounts. Estimate of total overstatement Requirement c. What do you believe the auditor should do in the circumstances? A. The auditor should either propose an audit adjustment so that the unadjusted statement amount is less than materiality and/or perform more testing to obtain a better estimate of the population misstatements. B. The auditor should conclude that total assets are fairly presented in allmaterial respects. C. The auditor should either propose an audit adjustment so that the unadjusted misstatement amount is les: than the total performance materiality and/or perform more testing to obtain a better estimate of the population misstatements