Bill Smith Is on Assignment for His First Audit, When

question 65

Multiple Choice

Bill Smith is on assignment for his first audit, when he runs into an accounting practice he's never dealt with before. Rather than asking a more experienced colleague for advice, Bill decides he knows enough to handle it. After all, he passed the CPA exam, didn't he? Bill is exhibiting ________.

• A) arrogance bias
• B) overconfidence bias
• C) anchoring bias
• D) poor judgment

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Definitions:

Cash Crops

Cash crops are agricultural crops grown not for the farmer's use but for sale and profit, often including tobacco, cotton, and sugar in historical contexts.

Social Life

The part of an individual's time that is spent interacting with others in society, encompassing various personal, professional, and communal relationships.

Liberty Of Contract

A legal principle that individuals have the freedom to negotiate the terms of their employment contracts without government interference.

Labor Regulations

Laws and standards set by governments to control working conditions, minimum wage, hours, safety, and workers' rights.