7. risk has led to greater regulation and has seen an increase in disclosure thereof in the financial statements and integrated reports. A. Environmental. B. Geo-political. C. Information technology| D. Fraud. B. The first step in performing an evaluation of internal controls is: A. Performing a risk assessment. B. Communicating with management. C. The development of internal control questionnaires. D. The identification of objectives. 9. When evaluating the control environment within the organisation, the internal auditor will not be concerned about A. The philosophy and management style of management. B. Residual risk as a result of the implementation of control activities. C. The code of conduct. D. Governance structures within the organisation. 10. Limitations to internal control exclude: A. Judgement applied in the decision-making process. B. Error in the normal course of business. C. The prevention of resource losses. D. Collusion between employees