Identify the correct order of steps for an auditor when applying a top-down approach to select controls to test in an integratedaudit.Evaluation of overall risks at the financial statement level.II. Evaluation of accounts, disclosures, and assertions for which there is a reasonable possibility of material misstatement.III. Consideration of controls at the entity level.LOA. I, II, IIIOB. III, I, IIOC. I, II, IIOD. II, II, I

The top-down approach is used to detect risks in the internal controls and gain an overall…

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Identify the correct order of steps for an auditor when applying a top-down approach to select controls to test in an integrated audit.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Identify the correct order of steps for an auditor when applying a top-down approach to select controls to test in an integrated
audit.
Evaluation of overall risks at the financial statement level.
II. Evaluation of accounts, disclosures, and assertions for which there is a reasonable possibility of material misstatement.
III. Consideration of controls at the entity level.
L
OA. I, II, III
OB. III, I, II
OC. I, II, II
OD. II, II, I

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