4. Allison Garrett works on a number of audits of technology equipment manufacturers and has developed extensive knowledge and experience in the industry. On the recent audit engagement of financial statements for Zurich Technologies, Allison was responsible for auditing the valuation of inventories, including the reserve for obsolescence. Given her familiarity with the industry, Allison decided to conduct a quick ratio analysis of the days in inventory and determined that the reserve was fairly stated, given it was in line with reserves established by some of her other clients. She determined that additional evidence was not necessary to obtain because of her experience with other clients.

Required:

For each of the scenarios listed above, describe the most likely judgment trap that ultimately biased the auditors decision making in the audit.