ndependent auditors who consider fraud in the course of financial statement audits are well-advised to quantify materiality" in terms of: a maximum percentage of net income overstatement that might mislead investors in relation to the latest financial statements under audit. controversial accounting measurements that might mislead investors in relation to the latest financial statements under audit. a cumulative amount of misstatement of assets or income over several years past and current that might mislead investors in relation to the latest financial statements under audit. the maximum amount of asset overstatement that might mislead investors in relation to the latest financial statements under audit