This is in lieu of a mid-term exam.Due by Sunday, February 23,11:59PM .

I noted in my introduction that, as an auditor, this may be one of the most important subjects we must address. Accordingly, please write an essay of 5-10 pages on professional skepticism, or "PS." Pleaseanswer the followingquestionsand cite your sources as appropriate. All of the areas below have been covered in your readings and/or videos.

I would suggest using the questions below as your subject headings, as opposed to "burying" your answers in the text throughout the essay.

As this will take the place of a midterm, it is thus an important part of your grade,

1. What is "professional skepticism?" How is it defined, if at all, in the literature? (Cite AICPA, SEC and PCAOB literature)

2. What are the two perspectives we read about relating to PS? Discuss each. Which perspective do you think is more important, and why?

3. How does PSrelate toprofessional judgment?

4. Why is PS so importantin relation to an auditor'sfulfilling his/her responsibilities?

5. In your opinion, what are the most significant "biases" discussed in the literature I had you read, and how does each affect PS?

6. Academic literature discusses two types of PS: "trait" and "state" skepticism. What do you think is meant by those?

7. In your opinion, can you increase or enhance an auditor's level of skepticism? How? What do you think the implications of your answer are to anaudit firm?

Please help me with question number 2