a) A conceptually logical approach to the auditor's evaluation of internal controls consists of the following four steps:

I. Determining the internal controls that should prevent or detect errors or fraud

II. Identifying control deficiencies to determine their effect on the nature, timing, or extent of auditing procedures to be applied and suggestions to be made to the client.

III. Determining whether the necessary internal control procedures and are prescribed and being followed satisfactorily.

IV. Considering the types of errors and fraud that can occur.

What should be the order in which these four steps are performed?

i) I, II, III, IV

ii) I, III, IV, II

iii) III, IV, I, II

iv) IV, I, III, II

Hint: This is a fairly straight-forward question that can be answers based on the text's description of the order in which these steps are taken. However, you will also need to review the logic behind the ordering to provide a sufficient explanation.

Answer:

Explanation: