The five steps in applying materiality are listed below in random order. 1. Estimate the combined misstatement.
2) Estimate the total misstatement in the segment.
3) Set preliminary judgement of materiality.
4) Allocate preliminary judgement of materiality to segments.
5) Compare combined estimate with preliminary judgement about materiality. The correct sequence from start to finish would be:
A) 1 2 5 4 3.
B) 3 4 2 1 5.
C) 4 3 1 5 2.
D) 5 1 3 2 4.
Correct Answer:
Verified
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