Your dad's friend Frank has a business, Frank's Franks, which is responsible for street-corner vending of sausages, pies and soft drinks. It's a small business with an office and four vending carts located in different areas of the city. When you asked Frank what kind of internal controls his business has in place, Frank said, 'We don't have a formal system of internal controls - don't need them. My employees are family members and friends, and I trust them completely! When the business grows and I have to hire strangers, then I'll think about those controls. But for now, the business is profitable, and I'm happy.' After Frank left, you talked to your dad about what you had learned in accounting, and asked whether he thought Frank would appreciate hearing about it. Your dad assured you that Frank would be open to your suggestions.

Required:

Write a letter to Frank explaining how you think his business would benefit from a system of internal controls, even though he trusts his employees. Also describe specific controls that Frank could use in his particular business.