Which step is most critical for an underwriter to establish the reasonableness of its investigation in asserting a due diligence defense?

1. AReviewing and documenting all material aspects of the issuer’s business and financials✓ Correct answer
2. BOnly reviewing publicly available information about the issuer
3. CRelying entirely on the issuer’s representations without independent verification
4. DDelegating all due diligence tasks to outside counsel without oversight

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