Consider the Following Short Case as You Respond to the Question

question 34

Multiple Choice

Consider the following short case as you respond to the 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.The less experienced accountants on Amanda's team are suffering from:

• A)Relapse errors.
• B)Satisficing.
• C)Bounded rationality.
• D)Lack of information technology.

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Definitions:

Prediction

The act of forecasting or estimating a future event based on current knowledge or analysis.

Theory

A systematic, coherent, and logical set of ideas about a particular topic or phenomenon that serves to organize and explain data and generate new knowledge.

Hypothesis

A hypothesis is a proposed explanation for a phenomenon, made as a starting point for further investigation, that can be tested through research and experimentation.

Public Policy

The principles and guidelines by which governments operate, including laws, regulations, decisions, and actions to address public issues.