Consider the Following Short Case as You Respond to the Next

question 46

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.Consider the following comments Amanda could make after purchasing or building appropriate tools for knowledge management. Which of them best demonstrates that she understands the seven steps in creating a knowledge management system?

• A)I'm glad that's over. Now that the system is designed, we don't have to think about it again.
• B)We can monitor the system in the same ways we monitor our internal control plan.
• C)Now that the system is created, we need to determine its value for balance sheet purposes.
• D)I can be assured now that relapse errors are a thing of the past.

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Definitions:

Salt Dome

A type of geological formation where a column of salt moves upwards through the rock layers above, often creating traps for oil and gas.

Energy Resource

Natural resources or man-made systems utilized to produce energy in the form of electricity or fuel.

Fold

A bend in layers of rock, often the result of compression forces and indicative of the rock layers' plasticity under such stress.

Salt Dome

A geological formation resulting from layers of salt that have been thrust upwards through overlying sediment, often forming a dome-like structure.