A conceptually logical approach to the auditor's consideration of relevant controls consists of the following four steps:
Determine whether the relevant controls are capable of preventing, or detecting and correcting, material misstatements and have been implemented.
Evaluate the operating effectiveness of relevant controls.
Assess the risks of material misstatement.
Design further audit procedures.
What is the most logical order in which these four steps are performed?
A. I, II, III, IV.
B. II, IV, I, III.
C. I, III, IV, II.
D. III, I, II, IV.