At planning, Langdon Co's auditor set materiality at 5% of forecast profit before tax of $3,600,000, and performance materiality at 75% of materiality. Tolerable misstatement for each test is set equal to performance materiality. A test of trade receivables at the interim audit projected a misstatement of $100,000. The draft financial statements now show profit before tax of $2,400,000, and the firm's policy is to revise materiality on the actual figure, keeping the same percentages.
What should the auditor conclude about the receivables test? (2 marks)