Recently in the Deputy Chair of ASIC has resigned over a $70,000 rental allowance paid as part of his relocation from Melbourne to Sydney. Assuming that the expenses were appropriately approved and authorised, provide an interpretation of the situation in terms of the COSO internal control framework:

a) Of the five components of the COSO framework, fundamentally where does the problem regarding the expenditure arise.

b) Given what the component identified in (a) covers, in what way is the expenditure problematic.

c) Reportedly, the Deputy Chair offered to repay the $70,000. In terms of your answers above, why was this insufficient remediation of the problem.