Access a copy of the CPAB s 2013 Annual Inspection Report at http://www.cpab-ccrc.ca/Documents/Topics/Public%20 Reports/2013_Public_Report_EN.pdf . Refer to Appendix D of the report, which summarizes the most common inspections findings and groups them by category. REQUIRED 1. Read the examples provided for risk assessment and think about judgment biases in Chapter 4 . Which judgment bias would most likely lead auditors not to appropriately link risk assessment to risk response? 2. Read the examples provided for the audit of estimates and explain which phase of the audit process each example relates to. 3. Explain why the CPAB recommended that the auditors needed to apply a heightened sense of professional skepticism. Why do you think professional skepticism is so important in assessing management estimates?
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