Our testing of accounts receivable using confirmations revealed two errors in our sample, which while corrected by the client, were not corrected in a timely manner. Both errors resulted in overcharging the customers. Auditors conclude this is not a significant deficiency. The testing of accounts payable revealed a classification error in writing a month-end accrual where items that should have been accrued to accounts payable were classified as accrued liabilities. This classification error amounted to $325,153.43. Accounts payable were understated by 2.84% and accrued liabilities were overstated by 2.81%. However, there is no P&L impact. The testing of fixed assets for the year ended 12/31/xx revealed an understatement of fixed assets and accounts payable as of 12/31/xx. Fixed assets and accounts payable are understated by $463,197. Performance materiality (tolerable misstatement) for the fixed asset testing was $1 million. Keystone rolling out new products that bring new inherent risks, such as the risk of providing incorrect data to customers that could result in disputes or legal action for damages. Keystone must design internal controls for the new revenue stream (data products) that is different from its trading operations. These risks are not material to Keystone's overall operations at this time, but if sales expand, then the risk will increase. assertions regarding the financial statement. Consider the following: Accuracy and valuation, existence, comple