Kindly solve it as soon as possible Transcribed Image Text: An auditor obtains the audit client’s accounts receivables balances for the year. The book value of the accounts receivable is

Kindly solve it as soon as possible Transcribed Image Text: An auditor obtains the audit client’s accounts receivables balances for the year. The book value of the accounts receivable is $10,000,000. The auditor sets the tolerable misstatement at $500,000 (5% of the book value of
the population).
The auditor stratifies the population and randomly selects accounts from each level for testing, After testing, the total estimated overstatement of accounts receivable is more than $500,000.
Which action should be taken next by the auditor?
O Ask the client to retrieve the assessed value
O Apply alternate audit procedures
O Decrease the sample size
O Conclude that fraud is occurring
CLEAR
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