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Same problem but missing part III to finsihed it$.$

I cant figure out how to calcukate tolerable kistatement. $7$

EXHIBITS

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exhibit

Income Statement

Balance Sheet

Excerpt$-$Auditor's Guidance

Company and Industry Information

Qualitative Analysis

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Consolidated Construction Inc., an issuer, is a construction company with annual revenues of $$20$ million. As the audit senior engaged on Consolidated Construction's Year $6$ financial audit, you have been asked to calculate materiality as the engagement team plans the audit.

Using the exhibits, perform a quantitative analysis, perform a qualitative analysis, and determine the tolerable misstatement. In Part $1,$ determine overall materiality. In column B$,$ calculate and enter the current ratio rounded to two decimal places. In column C$,$ select the calculation approach the auditor should use. In column D$,$ calculate and enter audit materiality. In Part II$,$ perform a qualitative analysis and identify areas of qualitative concern for the Year $6$ audit. There are four areas of qualititative concern. In column B$,$ select an area from the options provided for each line. An option may be selected only once. In Part III, column B$,$ calculate and enter the tolerable misstatement and the allowable audit misstatement for select account balances identified in column A$.$ Enter amounts in whole dollars.

Part I: Quantitative Analysis

$\backslash$table$[[$A$,$B$,$C$,$D$,],[1,$Quantitative Analysis,Current Ratio,Approach,Overall Materiality$],[2,$Overall materiality,$1\mathrm{.}42,$Income before taxes,$$16]]$

Part II: Qualitative Analysis

$\backslash$table$[[$A$,$B$],[,\backslash$table$[[$High turnover of senior$],[$mananamont or kav$]]]]$

EXHIBITS

Income Statement

Balance Sheet

Excerpt$-$Auditor's Guidance

Company and Industry Information

Qualitative Analysis

Part II: Qualitative Analysis

$\backslash$table$[[$A$,$B$,],[1,$Qualitative concern $1,\backslash$table$[[$High turnover of senior$],[$management$,$ or key$],[$accounting or financial$],[$reporting personnel$]]],[2,$Qualitative concern $2,$History of misstatements$],[3,$Qualitative concern $3,$History of misstatements$],[,$Qualitative concern $4,\backslash$table$[[$Increased issues needing$],[$significant judgment or$],[$estimates with high$],[$estimation uncertainty$]]]]$

Part III: Tolerable Misstatement and Specific Account Balance Materiality for Year $6$

$\backslash$table$[[,$A$,$B$],[1,$Tolerable misstatement,$],[2,\backslash$table$[[$Specific account: Account$],[$receivable$]],$$$3$

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