8.Reply as to whether you believe the following statements areTRUE or FALSEconcerning (Worth 5 points):

t/f - Materiality is based on both qualitative and quantitative considerations.

t/f - Tolerable misstatement is generally the largest amount of an error an auditor can tolerate for any one account/disclosure.

t/f - In the Planning phase of the audit Materiality is used for scoping (to determine which accounts are significant and therefore need to be tested by the auditor).

t/f -If misstatements aggregating $50K would have a material effect on the balance sheet and errors aggregating $100K would have a material impact on the Income Stmt. $100K should be set as Overall Materiality.

t/f -Deminimis Materiality is the largest amount of uncorrected dollar misstatement the auditors believe could exist in published financial statements without causing them to be considered materially misleading.