Consider the Following Short Case as You Respond to the Next

question 50

Multiple Choice

Consider the following short case as you respond to the next question: Amanda is a partner in a CPA firm; she supervises a staff of ten professionals, some of whom are already licensed CPAs and some of whom are still working toward licensure. She is responsible for audits of independent bookstores in California, Nevada and Arizona. Amanda is concerned that the less experienced professionals she supervises are repeating the mistakes she and the more experienced professionals on her team made when they began auditing. She therefore wants to create a knowledge management system.Amanda's staff may be committing relapse errors due to information overload. Which of the following best pairs a cause of information overload with an appropriate countermeasure?

• A)Auditors regularly work ten to twelve hours per day; they need to allow more time to complete important tasks.
• B)Auditors work in teams of two; they need to formalize the language used to describe information.
• C)Auditors regularly work ten to twelve hours per day; they need to engage in more satisficing.
• D)Auditors work in teams of two; they need to engage in more satisficing.

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Definitions:

Income Stocks

Stocks that regularly pay high dividends, typically associated with well-established companies with stable earnings.

Cash Dividends

Profits distributed to shareholders out of a company's earnings in the form of cash.

Large Capital Stocks

Shares issued by a company that represent significant equity ownership and investment in the company.

Cash Dividend

A payment made by a corporation out of its earnings to shareholders, usually in the form of cash.