The following are steps in the methodology for designing tests of? controls, substantive tests of? transactions, and tests of details of balances for the payroll and personnel? cycle:

1.	Design tests of details of balances for the payroll and personnel cycle.
2.	Evaluate whether control risk can be assessed as low for payroll.
3.	Design and perform? payroll- and? personnel-related substantive analytical procedures.
4.	Identify controls and deficiencies in internal control for the payroll and personnel cycle.
5.	Obtain an understanding of the payroll and personnel cycle internal controls.
6.	Evaluate tests of controls and substantive tests of transactions results.
7.	Design payroll and personnel cycle tests of controls and substantive tests of transactions.
8.	Assess inherent risk for? payroll-related accounts.
9.	Evaluate risk and materiality for payroll expense and liability accounts.

Requirements

a.	Identify? (1) those steps that are tests of controls or substantive tests of transactions and? (2) those that are tests of details of balances.
b.	Put steps that are tests of controls and substantive tests of transactions in the order of their performance in most audits.
c.	Put the tests of details of balances in their proper order.

Requirement a. Identify? (1) those steps that are tests of controls or substantive tests of transactions and? (2) those that are tests of details of balances. ?(If a box is not used in the? table, leave the box? empty; do not select a? label.)

Tests of controls or
substantive tests of	Tests of details
transactions	of balances
6.	2.
3.	7.
8.	4.
	1.

Requirements b. and c. Put steps that are tests of controls and substantive tests of transactions in the order of their performance in most audits. Put the tests of details of balances in their proper order. ?(If a box is not used in the? table, leave the box? empty; do not select a? label.)

Tests of controls or
substantive tests of	Tests of details
transactions	of balances
2.
9.
7.
4.
1.