Final answer:
Projected misstatement is not the only amount that the auditor considers in evaluating materiality and fairness of the financial statements. Auditors also consider other factors such as inherent risk, control risk, and detection risk. Projected misstatement refers to an estimate of potential misstatements in the financial statements.
Step-by-step explanation:
Projected misstatement is not the only amount that the auditor considers in evaluating materiality and fairness of the financial statements. It is one of the factors that auditors consider along with other factors. Projected misstatement refers to an estimate of potential misstatements in the financial statements based on audit procedures performed. Auditors also consider inherent risk, control risk, and detection risk when evaluating materiality and fairness.