For the May 31, 2020 audit of Gleam Co., the inventory account has a balance of...

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For the May 31, 2020 audit of Gleam Co., the inventory account has a balance of $1,500,000. You established a $10,000 tolerable misstatement for the account. You selected 20 items for detailed testwork with a total sample value of $300,000. You discovered overstatements of $2,000 and understatements of $500. Under these circumstances, would you conclude that the inventory balance is fairly stated or not fairly stated as of May 31, 2020? Document your work./ For the May 31, 2020 audit of Gleam Co., the inventory account has a balance of $1,500,000. You established a $10,000 tolerable misstatement for the account. You selected 20 items for detailed testwork with a total sample value of $300,000. You discovered overstatements of $2,000 and understatements of $500. Under these circumstances, would you conclude that the inventory balance is fairly stated or not fairly stated as of May 31, 2020? Document your work./

Answer rating: 100% (QA)

To determine if the inventory balance is fairly stated or not we need to compare th... View the full answer