Read the following Case:St. John Corporation

You are a member of the internal audit team for St. John's Corporation. In planning the audit for the current year, the team plans to use a similar materiality level.While such a conclusion might be appropriate, you would like to caution against possible judgment trap(s) that might the team fall into. Write a memo to the team describing judgment trap(s) might the team fall into as well as which step(s) in the judgment process are most likely affected?

This analysis should be prepared as a Microsoft Word document, and then attached to the unit discussion thread. There is no minimum or maximum in terms of the word count; however, the response should explicitly address all required components of this discussion assignment. The document should be prepared consistent with the APA writing style (6thedition) and reflect higher level cognitive processing (analysis, synthesis, and or evaluation).Please provide IN-TEXT CITATION.

Review the following links concerning Professional Judgement:

https://university.kpmg.us/professional-judgment/thought-leadership/good-judgment-requires-discipline--awareness-of-traps-and-biases.html

http://www.journalofaccountancy.comews/2012/mar/20125254.html

St. John Corporation is not able to service its debts and is unable to secure any significant restructuring arrangements from its primary lenders. As a result, St. John has decided to liquidate the corporation and has submitted a plan for liquidation. The plan has received all necessary approvals, and the liabilities affected by the plan follows: Accounts payable: Of these accounts, $400,000 is fully secured by claims against inventory with a book value of $4430,000. The inventory was completed at an additional cost of 25,000, it was sold for $480,00, and the secured payables were paid. Another $320,000 of the payables is secured by the remaining inventory which is estimated to have a net realizable value of $200,000. The balance of the payables is unsecured. Mortgage payable: The mortgage is secured by the manufacturing plant and other current assets with a book value of $130,000. The plant is currently listed for sale with an asking price of $1,800,000. Realistically, it is estimated that the plant could be sold for $1,500,000 before commissions of $90,000. The other current assets securing the mortgage were sold for $100,000. The audit team for St. John Corporation is planning for the upcoming audit after restructuring of the debt. The restructuring was necessary as economic conditions hampered the client's ability to make scheduled repayments of its debt obligations. The restructured debt agreements included new debt covenants. In auditing the debt obligation in the prior year (before the restructuring), the team established materiality specific to the financial statement debt account materiality