Assume materiality for the financial statements as a whole is $100,000 and performance materiality for accounts receivable is set at $40,000 If the auditor finds one receivable that is overstated by $55,000, what should the auditor do ...

If performance materiality for accounts receivable is 40000 and the ...

Assume materiality for the financial statements as a whole is $100,000 and performance materiality for accounts receivable

Question:

Assume materiality for the as a whole is $100,000 and performance materiality for is set at $40,000. If the auditor finds one receivable that is overstated by $55,000, what should the auditor do?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...