Audit question.

Say overall materiality misstatement threshold is $10,000

You get 50~75% of overall materiality to get tolerable misstatement.

Say you choose 50%, so your tolerable misstatement is $5,000

Do we allocate this $5,000 to each individual account (ex. cash, AR, goodwill) so aggregate tolerable misstatement equals $5,000? or can it exceed $5,000?

Or, does tolerable misstatement, which is $5,000 apply to each individual accounts? So each account has $5,000 as tolerable threshold?