3) The client includes ONLY PPB & Make Ready in the inventory – You have accepted this as GAAP4) Your Tolerable Misstatement for the entire inventory is $50,000a) Complete the Audit Test belowb) Determine the mistatement for the sample selectedc) Determine the estimated misstatement for the entire inventoryd) Present you finding in Workpaper form (which should include your schedule below).Your findings should include the percent of misstatement for the sample group, the projected misstatement for the entire inventory. The adjusted entry if required. Any legends if required.1) You have selected the 11 titles of the clients complete inventory which has a book value of $1,875,235.50.TotalAuditor’sCost toInventoryMake Ready Other$99,570.27$104,437.65$48,540.10$44,248.26$41,006.92$19,912.00$15,750.00$30,634.40$35,000.00$50,207.43$39,179.002) You have requested & the client has provided copies of these invoices, coded as indicated (PPB, Make Ready, Other, & freight)(The audit test represents the invoices as provided by the client).
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