4. Discuss the Tolerable Misstatement situation shown below. The auditor determines overall materiality for the company being audited to be $20,000. Tolerable misstatement of $15,000 is assigned to each of the following four accounts. Unknown errors in each account are indicated below. Audit work is performed on each account as discussed in class [i.e. All or Nothing game]. The client makes any corrections to accounts as suggested by the auditor. After the completion of audit work, the auditor issues an unqualified (i.e. GOOD) auditors opinion. Was this the correct opinion? Discuss and show applicable calculations. Account Unknown error in account before any audit work is done (all accounts are overstated) Cash $ 35,000 Accounts receivable 14,000 Prepaid Assets 5,000 Property, Plant and Equipment 8,000