You are evaluating audit results for assets in the audit of Mannings Manufacturing. You set the preliminary judgment about materialty at $75.000. The account balances, performance materiality and strated overstatements in the accounts are shown next. Click the icon to view the account balances, performance materiality, and estimated overstatements.) Requirements a. Assume you tested inwertory amounts totaling $800,000 and found $40,000 in overstatements. Ignoring sampling risk, what is your estimate of the total statement in Inventory b. Based on the audit of the assets accounts and ignoring other accounts, are the overall financial statements acceptable? Explain c. What do you believe the auditor should do in the circumstances? Accounts receivable 1,300,000 32,500 17.000 Inventory 3,300,000 06,000 Other assets 280,000 1,600 4,940,000 $ 107,100 Total Requirement b. Based on the audit of the assets accounts and ignoring other accounts, we the overal financial statements acceptatie? Explain Based on the audit of the aswels accounts and ignoring other accounts, the estimate of total overtalement nourts to We can conclude that the overal francial statement 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 misstenent amount is less than the total performance material and or perform morting to an aber population misstatements OB. The auditor should other propose an audit adjustment so that the unadjusted statement amount is less than materially andior perform more being to obtain a better state of the OC. The auditor should conclude that total assets are fairly presented in all material respects OD. None of the above Enter any number in the edit fields and then continue to the next question mory amounts totaling $800,000 and found $40,000 in overstatements. Ignoring sampling risk, what is your estimate of the total misstatement in i assets accounts and auditor should do in the Data Table 1,300,000 3,300,000 280,000 Estimate of Total Account Account Performance Balance Materiality 60,000 $ 3,000 Overstatements 4,940,000 $ Cash $ $ 2,000 17,000 me audit of the assets ac Accounts receivable 32,500 1,300,000 3,300,000 280,000 ? Hal statement Inventory Other assets Esets accounts and ignor 66,000 5,600 1,600 ? 107.100 $ 4,940,000 $ Total you believe the auditor shq Irm more testir Print Done a better estima either propose an audit a ements deither propose an audit almo ad conclude that total assets are fairly presented in all material respects. we You are evaluating audit results for assets in the audit of Mannings Manufacturing. You set the preliminary judgment about materialty at $75.000. The account balances, performance materiality and strated overstatements in the accounts are shown next. Click the icon to view the account balances, performance materiality, and estimated overstatements.) Requirements a. Assume you tested inwertory amounts totaling $800,000 and found $40,000 in overstatements. Ignoring sampling risk, what is your estimate of the total statement in Inventory b. Based on the audit of the assets accounts and ignoring other accounts, are the overall financial statements acceptable? Explain c. What do you believe the auditor should do in the circumstances? Accounts receivable 1,300,000 32,500 17.000 Inventory 3,300,000 06,000 Other assets 280,000 1,600 4,940,000 $ 107,100 Total Requirement b. Based on the audit of the assets accounts and ignoring other accounts, we the overal financial statements acceptatie? Explain Based on the audit of the aswels accounts and ignoring other accounts, the estimate of total overtalement nourts to We can conclude that the overal francial statement 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 misstenent amount is less than the total performance material and or perform morting to an aber population misstatements OB. The auditor should other propose an audit adjustment so that the unadjusted statement amount is less than materially andior perform more being to obtain a better state of the OC. The auditor should conclude that total assets are fairly presented in all material respects OD. None of the above Enter any number in the edit fields and then continue to the next question mory amounts totaling $800,000 and found $40,000 in overstatements. Ignoring sampling risk, what is your estimate of the total misstatement in i assets accounts and auditor should do in the Data Table 1,300,000 3,300,000 280,000 Estimate of Total Account Account Performance Balance Materiality 60,000 $ 3,000 Overstatements 4,940,000 $ Cash $ $ 2,000 17,000 me audit of the assets ac Accounts receivable 32,500 1,300,000 3,300,000 280,000 ? Hal statement Inventory Other assets Esets accounts and ignor 66,000 5,600 1,600 ? 107.100 $ 4,940,000 $ Total you believe the auditor shq Irm more testir Print Done a better estima either propose an audit a ements deither propose an audit almo ad conclude that total assets are fairly presented in all material respects. we