Describe the steps in Figure 8.4, which is the flowchart for the lower control risk approach.

Data From Figure 8.4

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No For the appropriate assertions, obtain an un- derstanding of relevant internal control structure policies and procedures-docu- ment this understanding. Perform the type and quantity of tests of controls necessary to support a lower planned level of control risk. Assess control risk (usually at a moderate or low level if the preceding procedures sup- port it). Is it likely that additional evidence can be obtained to support a further reduction in the assessed level of control risk and is it efficient to do so? Yes Perform additional tests of controls-reas- sess the level of control risk and decide whether that level of control risk supports the planned level of substantive tests. If the level of control risk supports the planned level of substantive tests, or No If the level of control risk does not support the planned level of substan- tive tests, revise the planned level of substantive tests, document the assessment of control risk, and document the revised as- sessment of control risk, and