Final answer:
When the aggregated misstatements are less than the overall materiality, the auditor can conclude that the financial statements are fairly presented and can be relied upon.
Step-by-step explanation:
When the aggregated misstatements are less than the overall materiality, the auditor can conclude that the financial statements are fairly presented and can be relied upon. Materiality refers to the threshold at which misstatements in the financial statements can affect the users' decision-making process. If the aggregated misstatements are below the overall materiality, it indicates that the errors are not significant enough to impact the overall fairness of the financial statements.
For example, let's say the overall materiality set by the auditor is $1 million. If the aggregated misstatements identified during the audit amount to $500,000, which is less than the overall materiality, the auditor can conclude that the misstatements are not material and the financial statements can be considered fairly presented.
In such a case, the auditor may issue an unqualified opinion, also known as a clean opinion, stating that the financial statements are free from material misstatements and can be relied upon by the users.