Martin Inc

Multiple Choice

Martin Inc.is being audited by the firm MNE and Associates.MNE's auditors decide that $100 million is the planning materiality and $50 million is the appropriate performance materiality at the account level.If all of Martin's account balances are below $50 million, the auditors will:

A) still perform detailed some audit procedures on the account because the immaterial misstatements can be material in aggregate.
B) to perform detailed audit procedures on the accounts because the sum of Martin's accounts is greater than $50 million.
C) end audit procedures, both detailed and on controls, because performance materiality has reduced the probability that the sum of immaterial and/or undetected misstatements in the financial statements is less than materiality for the financial statements as a whole.
D) check the auditing standard guidelines for the determination of performance materiality.