Which of the following statements concerning materiality is incorrect?

Multiple Choice

• Overall materiality represents the maximum amount of accumulated misstatements in the financial statements before the auditor can conclude they are materially misstated.
• Performance materiality is an amount that is applied uniformly to all accounts.
• Two auditors, auditing the same company at the exact same time, can both come up with completely different materiality figures.
• Materiality affects the risk assessment, risk response, and concluding ad reporting phases of the audit.