P7-1B Caldwell-Bailey Development Company prospered during the lengthy economic expansion of the 1990s. Business was so good that the company used very few internal controls. A recent decline in the local real estate market caused Caldwell-Bailey to experi- ence a shortage of cash. Dave Matthews, the company owner, is looking for ways to save money. As a consultant for the company, write a memo to convince Matthews of the company's need for a system of internal control. Be specific in explaining how an internal control system could save the company money. Include the definition of internal control, and briefly discuss each characteristic of an effective internal control system, beginning with competent, reliable. and ethical personnel.