If the auditor believes that misstatements aggregating approximately $50,000 would be material to the income statement, but misstatements aggregating approximately $100,000 would be material to the balance sheet, the auditor typically assesses overall materiality at $100,000 or less.

Question

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The auditor typically assesses overall materiality based on the smallest amount that could influence the economic decisions of users, which in this case would be $50,000 for the income statement.

If the Auditor Believes That Misstatements Aggregating Approximately $50,000 Would