ont 2 Paragraph 3 2.1.1.1. 2 I 3 1.4.1 56-1 7 8 9 10 1 111 12 T 13. 14. 1 151 16 5) Applying materiality in practice is: A) based on experience. C) straightforward. B) fairly simple. D) different for each audit 6) What is the correct sequence of applying the five steps of materiality? 1. Estimate the combined misstatement. 2. Estimate the total misstatement in the segment. 3. Set the preliminary judgement of materiality. 4. Allocate the preliminary judgement of materiality to segments. 5. Compare the combined estimate with the preliminary judgement about materiality. The correct sequence from start to finish would be: A) 12543. B) 51324 I C) 34215. D) 43152 7) If it is probable that the economic decisions of users would have been influenced by the omission or misstatement of information, then that information is: A) relevant. B) insignificant. C) material. D) significant. 8) The preliminary judgement about materiality is the statements could be misstated and still NOT affect the economic decisions of users. A) median average B) minimum amount by which the auditor believes the C) maximum D) mean average 9) Which one of the following statements does NOT apply to the preliminary assessment of materiality? A) It is the maximum amount by which the auditor believes the statements could be misstated and still