Problem Statement: Sara Greenburg is the chair of the audit committee of Seaworthy Solutions, a marine construction services provider. In accordance with the audit committee charter, she arranges for the committee to meet quarterly with the external auditor to discuss a wide range of issues such as audit scope, testing plans, internal control over external financial reporting, quality of financial reporting, and audit findings and recommendations. She is responsible for coordinating the audit committee's evaluation of the external auditor. Required: 1. Look at the COSO example for Control Environment/Principle 2/ Example: Interacting with Auditors. What considerations does Sara Greenburg base her evaluation on? 2. For this internal control issue, describe the objective, type or component or control, and entity level (1) Objective: operations, reporting, or compliance (2) Type or component of control: control environment, risk assessment, control activity, information and communication, and/or monitoring.

Answer rating: 100% (QA)

1 Sara Greenburg bases her evaluation on several considerations similar to those outlined in the COS... View the full answer