David Pao argues that application should be based on accurate interpretation of the Bible. He suggests mainly three tools and nicely demonstrates each of them with example.
Regarding his reflection on how to faithfully apply the Epistles in NT, it might be relatively hard to follow and I found it the least enjoyable part of the book. Besides, his conclusion in this section is strongly adhered to the Reformed understanding of Gospel. Those looking for a fresh while pragmatic application would very likely to be disappointed.
Although the big picture is lucid, the structure within chapter is a bit messy and the sub-headings are sometimes misleading. Nevertheless, the book has strong coherence and would adequately challenge those who are content with memorising and using a biblical quotations out of context, "don't miss the forest for the trees".