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You are evaluating audit results for assets in the audit of HalosHalos Manufacturing. You set the preliminary judgment about materiality at $50,000. The account? balances, performance? materiality, and estimated overstatements in the accounts are shown next.
a. Assume you tested inventory amounts totaling $1,250,000 and found $12,500 in overstatements. Ignoring sampling? risk, what is your estimate of the total misstatement in? inventory? ?(Do not round interim? calculations.)
$ 12 comma 500$12,500
in overstatements. Ignoring sampling? risk, what is your estimate of the total misstatement in? inventory? ?(Do not round interim? calculations.)
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