Assess activities $1.$ through $5.$ in this step and then assess activities $6.$ through $10.$ in the following step.

Activity

Stage of Planning

$1.$

Review accounting principles unique to the client's industry

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$2.$

Determine the likely users of the financial statements

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$3.$

Evaluate the appropriate financial statement measures for determining amounts likely to be considered material by users of the financial statements

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$4.$

Identify whether any specialists are required for the engagement

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$5.$

Send an engagement letter to the client

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Part $2$

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Activity

Stage of Planning

$6.$

Tour the client's plant and offices

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$7.$

Specify materiality levels to be used in testing of accounts receivable

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$8.$

Compare key ratios for the company to those for industry competitors

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$9.$

Review management's risk management controls and procedures

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$10.$

Identify potential related parties that may require disclosure

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