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

2. 6-30 (Objective 6-5) The following general ledger accounts are included in the trial balance for an audit client, Jones Wholesale Stationery Store.

   Accounts payable	Depreciation expense	Prepaid insurance
   Accounts receivable	furniture and equipment	Property tax expense
   Accrued interest expense	Furniture and equipment	Property tax payable
   Accrued sales salaries	Income tax expense	Purchases
   Accumulated depreciation	Income tax payable	Rent expense
   furniture and equipment	Insurance expense	Retained earnings
   Advertising expense	Interest expense	Salaries, office and general
   Allowance for doubtful accounts	Inventory	Sales
   Bad debt expense	Loans payable	Sales salaries expense
   Cash	Notes payable	Telecommunications
   Common stock	Notes receivabletrade	expense

   Required

   1. Identify the accounts in the trial balance that are likely to be included in each transaction cycle. Some accounts will be included in more than one cycle. Use the format that follows.

      Cycle	Balance Sheet Accounts	Income Statement Accounts
      Sales and collection
      Acquisition and payment
      Payroll and personnel
      Inventory and warehousing
      Capital acquisition and repayment

   2. How will the general ledger accounts in the trial balance most likely differ if the company were a retail store rather than a wholesale company? How will they differ for a hospital or a government unit?