In making judgements about materiality at the account balance level, the auditor must consider the relationship between it and overall materiality. This should lead the auditor to plan the audit to detect misstatements that:
A) are individually material to the statements taken as a whole.
B) are individually immaterial to the statements taken as a whole.
C) bring the cumulative total of known misstatements to the level of materiality established by management.
D) may be immaterial individually, but may aggregate with misstatements in other accounts to a material level.

Question

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The auditor's goal is to ensure that the financial statements as a whole are free from material misstatement, whether due to fraud or error. Misstatements that are immaterial individually may become material when aggregated with misstatements in other accounts. This approach helps in identifying the cumulative impact of misstatements that could affect the financial statements' overall fairness and reliability.

In Making Judgements About Materiality at the Account Balance Level