Following Are the Planning Steps Involved in Considering Materiality in a Top-Down

Essay

Following are the planning steps involved in considering materiality in a top-down approach to planning for tests of controls. Number the items in from 1 (top) through 6 (bottom) to indicate the proper top-down sequence of the steps.
___ Identify risks that could cause material misstatement of relevant assertions in a significant account.
___ Set financial statement level materiality
___ Design audit procedures addressing controls
___ Investigate controls addressing risks
___ Identify significant accounts
___ Determine relevant management assertions for significant accounts and set materiality at the account level