1. Do you believe that a member of the audit engagement team servicing a client should also serve on the audit committee of the board of directors of the client entity? Why or why not?
2. COSO explains the importance of the control environment to internal controls by stating that it sets the tone of an organization, influencing the control consciousness of its people. It is the foundation for all aspects of internal control, providing discipline and structure. Explain what is meant by this statement.