($3,000,000 The results of our audit test depend upon the tolerable error associated with the inventory account.

($3,000,000 The results of our audit test depend upon the tolerable error associated with the inventory account. If the tolerable error is $50,000, we cannot conclude that the account is fairly stated because our best estimate of the projected error is greater than the tolerable error. Did the misstatements occur in a particular type of item or in every item? Is there a discernable pattern of misstatements?