Which of the Following Statements Are Incorrect About the Conceptual

question 31

Multiple Choice

Which of the following statements are incorrect about the Conceptual Framework's qualitative characteristic of verifiability?

• A) Direct verification is through direct observation such as counting cash.
• B) It means that different knowledgeable and independent observers will be able to reach complete agreement that the information is faithfully presented.
• C) Indirect verification requires checking the inputs of a model, formula or technique and recalculating the outputs using the same methodology.
• D) A consequence is that it may not be possible to verify budgeted information until a future period of time.

---

Definitions:

Anchoring and Adjustment Bias

A cognitive bias where an initial piece of information (anchor) significantly influences subsequent judgments or decisions.

Confirmation Error

A cognitive bias involving the tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Representativeness Bias

A cognitive bias where individuals make judgments about the probability of an event based on how much it resembles their existing stereotypes.

Escalating Commitment

The phenomenon where people increase their investment or involvement in a decision or action despite facing negative feedback or outcomes.