The CFO of a small company boasted to associates at a business club, "Fortunately, we don't need internal control. You see, we're a family business, and we're not going to steal from one another." Required:

a. Discuss the wisdom of the CFOs statement. 5%

b. Define the term "internal control and identify and briefly describe the major ERM system objectives and risk components of 2013 COSO (10%%)

c. Discuss the weaknesses in COSO's internal control framework that led to the development of the COSO Enterprise Risk Management (ERM) framework. (10%)