You are currently planning the audit of one of your larger clients, Raddy Ltd. (RD). RD is an established wholesale distributor of dairy produce and operates out of Singapore and Malaysia. The company has a distribution refrigeration warehouse in each country and it also operates a centralised office in Singapore for purchasing and accounting functions. You are reviewing the internal control system of RD as part of the audit process. RDs internal control system consists of the following: Control environment Risk assessment process Information system Control activities Monitoring of controls. Required: a) Discuss the term control environment in the context of an internal control system. (3 marks) b) Evaluate the importance for the auditor obtaining an understanding of the clients company and its environment, including the companys internal controls? (5 marks) c) Outline FOUR (4) key factors that is expected to be present in RDs control environment. (4 marks) d) Discuss FOUR (4) inherent limitations of an internal control system. (4 marks)