Question 1: Audit Evidence and Scepticism Imagine that you are auditing a large investment bank. Watch the following section of the video from Inside Job https://youtu.be/T2IaJwkqgPk?t=2972 Watch until just Part III starts (at about 60 minutes) (49:32 until 57:08). There are two elements here to consider: a) the discussion around Timberwolf (which is a CDO sold) and the credit default swap discussion; and b) the discussion by the ratings agency. As an auditor, what lessons do you take from this discussion? What are the implications around existence volatility and valuation in relation to financial instruments? In looking at information during your audit, lets assume you came across the email correspondence about the shitty deal does that raise any ethical or audit concerns?