er 4. Discuss the Tolerable Misstatement situation shown below The auditor determines materiality for the company being audited to be $60,000. assigned to each of the following four accounts. in each of the accounts are indicated below. performed on each account as discussed in class. The c Tolerable misstatement of $30,000 is Unknown errors Audit work is lient makes orrections to accounts as suggested by the auditor. After the completion of audit work, the auditor issues an unqualified (i.e. GOOD) Discuss and show applicable calculations. auditors' opinion. Was this the correct opinion? Unknowm error in account before any audit work is done (all accounts are overstated) 50,000 36,000 5,000 12,000 Account Cash Accounts receivable Prepaid Assets Property, Plant and Equipment