Jacob is auditing a mutual fund with $$29\mathrm{.}2$ million of pre$-$tax income and $$72$ million in total assets. Materiality has

been determined to be $0\mathrm{.}5\%$ of total assets and tolerable misstatement is $50\%$ of materiality. The accounting firm

performs auditing procedures on all items above tolerable misstatement, but does not have a specific policy requiring

unrecorded misstatements to be booked that fall below the materiality threshold.

If the total of all unrecorded misstatements adds up to a $$125,500$ overstatement of revenues and assets, would this

firm issue an unqualified opinion?

yes

no