You are preforming the audit of Puffin Limited $($Puffin$)$ financial statements for its year ending September $20,2023.$ Puffin is a private company and operates a grocery distribution business in Newfoundland. Puffin's audited financial statements are used mainly by its bank, which has a made a large operating loan to Puffin. The bank requires Puffin to maintain a quick ratio of a least $1\mathrm{.}2.$ Otherwise, the bank can require Puffin to repay the loan in full immediately.Puffin's accounting policy is to value its inventory bases on the FIFO cost flow assumption. on September $30,$ Puffin received a large truckload of pomegranate juice from California Fruit Inc. Since these goods were in Puffin's warehouse at year$-$end, they were included in the year$-$end physical inventory count. During your audit you discovered that the company's accountant did not records this purchase in the accounts payable balance until October $10$th$,$ when an invoice was received from the supplier, California Fruit, in the amount of $$65,000.$Before correcting this error, Puffin's draft financial statements show inventory of $$900,000,$ total current assets of $$1,500,000,$ accounts payable of $$250,000,$ and total current liabilities of $$450,000.$Required:$1.$ Explain how the accounts in the Puffin September $30,2023,$ financial statements will be affected by this error. In your explanation, identify the assertion$($s$)$ violated by this error$\mathrm{.}2.$ Give one example of an audit procedure that would have discovered this error. Explain clearly how the procedure could discover the error$\mathrm{.}3.$ What is the impact of this error on Puffin's quick ratio? Show calculations. $($Reminder: quick ratio $-$ current assets less inventory divided by current liabilities$\mathrm{.}4.$ Would you consider this error to be material? Justify your response.