Refer to the Focus on Fraud feature The Importance of Internal Control for Safeguarding Assets at Chesapeake Petroleum and Supply, Inc. which describes the embezzlement at Chesapeake Petroleum and Supply, Inc.

1. Why is internal control important to an organization?
2. How does internal control help an organization achieve reliable financial reporting?
3. Why does an external auditor need to know about a clients internal control?
4. What is internal control over financial reporting and what are its components?
5. What type of control is segregation of duties and what risks is that control intended to mitigate?
6. What controls could Chesapeake Petroleum and Supply, Inc. have implemented that may have prevented the embezzlement?

Please provide 4 to 5 pages of comment for your answers to the above items a through f, using a 12 font of your choice. Make sure to provide and cite the specific AU-C authority for assisting you in your responses.