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:

Rationalization

the process of justifying behaviors or attitudes with logical, plausible reasons, even if these are not the true underlying motivations.

Political Goals

Objectives set by individuals or groups related to governing, influencing policy, or achieving power within a political framework.

Realistic Conflict Theory

A theory suggesting that intergroup conflict and prejudice arise from competition between groups for resources or status.

Scarce Resources

Limited or insufficient supplies of commodities or assets that are in demand.