An auditor established a $$60,000$ tolerable misstatement for an asset with an account balance of $$1,000,000.$ The auditor selected a sample of every twentieth item from the population that represented the asset account balance and discovered overstatements of $$3,700$ and understatements of $$200.$ Under these circumstances, the auditor most likely would conclude that

A$.$ There is an unacceptably high risk that the actual misstatements in the population exceed the tolerable misstatement because the total projected misstatement is more than the tolerable misstatement.

B$.$ There is an unacceptably high risk that the tolerable misstatement exceeds the sum of actual overstatements and understatements.

C$.$ The asset account is fairly stated because the total projected misstatement is less than the tolerable misstatement.

D$.$ The asset account is fairly stated because the tolerable misstatement exceeds the net of projected actual overstatements and understatements.