(PLease type the answers) (accounting 5520) Case study 31 Adding Mathematical Statistics to the Auditors Tool Box

1. Explain the advantages of knowing client background .

2. Justify an auditors decision to delve into the more personal aspects or histories of a business and/or its principals (at least conceptually).

3. Illustrate a situation in which the auditor might display cognitive biases, which could present threats to the auditors objectivity during the audit.

4. Identify one or more safeguards that may mitigate the auditors down-side-risk from cognitive biases

5. Identify two or more statements by management that might require further brainstorming by the audit team

6. Speculate on the extent to which the personnel of an entity being audited may know in advance what auditors will audit, which procedures are likely to be used, and when those procedures are likely to be applied. How could they know these things?

7. Illustrate how the reliability of the audit might be adversely affected by personnel of the entity being audited having foreknowledge of the auditors procedures and practices.

8. List some of the more useful points in the case section, The Examination, that Eddie Coello may have gleaned from the exchanges with his forensic accounting team and key members of management

9. Were there alternative hypotheses about possible causes of the apparently anomalous findings (i e., teller productivity)? What could they have been?

10. Explain how use of the Poisson (or other) probability models could be used to improve the use of sampling methods