REQUIRED: Your audit team has been charged with evaluating the
Hamilton Company Case. In doing so, the
partner on the engagement would like you to apply your
understanding of the case and KPMG Judgment
Framework (including the potental for judgment traps to affect
proper judgment application) to consider how the
audit process failed in this case and how the judgment framework
could have been used to make the audit process
more effective in this case. To address the partner ’s
request, please write a well-thought out and supported memo
addressing the following questions. There is no minimum/maximum
page requirement, but you should aim for amemo that effectively
communicates your thoughts to each question (part) below in a clear
and concise manner.
Take special note of proper grammer, flow, and presentation as
you prepare your memo. The memo will be worth
80pts in total.
PART 1
8/17/2019 Hamilton Auditing Case
4/4
4
PART 2
You have been introduced several types of common psychological
biases that may impair effective judgment
making by auditors (i.e. overconfidence, availability,
confirmation, anchoring, group-think, rush to solve). In
your opinion, what bias or biases is/are to most likely have
manifested in the Hamilton Case example? Provide
