In Considering Overall Materiality for Planning Purposes, an Auditor Believes

In considering overall materiality for planning purposes, an auditor believes that misstatements aggregating $10,000 would have a material effect on an entity's income statement but that misstatements would have to aggregate $20,000 to materially affect the balance sheet. Ordinarily, it would be appropriate to design audit procedures that would be expected to detect misstatements aggregating:

A) $10,000.
B) $15,000.
C) $20,000.
D) $30,000.

Correct Answer:

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