a. What is internal control? 

b. Explain the importance of COSO’s 2013 Internal Control—Integrated Framework in establishing strong internal control. 

c. Consider the following risk exposures at Enron: insufficient cash for operations, fraudulent accounting, too close a relationship with auditors, declines in stock price. For each risk exposure, indicate the relevant category of the Brown taxonomy; suggest at least one internal control to address the risk.

Risk	Category	Internal control
Insufficient cash for operations
Fraudulent accounting
Too close a relationship with auditors
Declines in stock price