Chapter 7 and Case 5

Knowledge Check 01 Select the correct order of the following steps in the decision-making process. 1. Evaluate the costs and benefits of the alternatives 2. Determine the decision alternatives 3. Identify the decision problem 4. Review the results of the decision 5. Make the decision

34. S1. Operational risk, as opposed to efficiency, is the risk of loss resulting from inadequate internal processes, people, and systems or from external events. S2. FS audit is concerned on to see that the credit control has been strictly followed while operational audit is concerned on to study the credit control system for suggesting better measures as necessary. Which of the following statements is/are false? Group of answer choices Statement I only Statements I and II Statement II only None of the statements

9 Choose a performance evaluation which aims to assist in safeguarding the environment. a. None of the options b. Government Auditing c. External Auditing d. Value for Money Audit Clear my choice   ◀︎ Announcements

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TRUE OR FALSE

3.) Which of the following is considered emotional biases?    A. Loss aversion, overconfidence, self-control B. Loss aversion, belief, self-control C. Loss aversion, overconfidence, perseverance     4.) Which of the following is considered cognitive errors?    A. belief perseverance biases, information-processing biases   B. belief perseverance biases, information-dissemination biases   C.belief persistence biases, information-dissemination biases

Question 6 Which ONE of the following best describes professional scepticism? An auditor should: A After obtaining an explanation from a client always confirm this with another member of staff B Not believe anything that management tells him/her, without speaking to a third party C Apply a questioning mind to the information and evidence he/she obtains D Always consider the worst outcome H 111

QUESTION 1 Which of the following is not a behaviour bias? a. Prospect theory b. Conservatism C. Framing e. Mental accounting Regret avoidance

Exhibit 1.1 18 13 10 16 14 13 17 15 13 11 14 14 11 10 12 12 11 13 15 9 12 13 16 8 21 Fill in the blanks for the information listed below. Trust Test (Test of Relationship Understanding Under Stress) T-Score Sten Score Percentile Raw Score TRAIT Empathy 63 _____ _____ _____ (M = 30, SD = 3)

Research "Auditor's Discussion and Analysis (AD&A)”. Do you think AD&A is a good idea? Explain your reasoning.

Please answer attached question    thanks

Adverse agreed upon procedures assertion attestation risk Consistent measurements Control criteria Financial forecast Quantitative or qualitative Responsible party SOC 3 Trust Services

Responsibility accounting:   Question 13 options:   a)  attempts to assign blame for problems to a specific manager   b)  focuses on whom should be asked about the information   c)  emphasizes controllability   d)  All of these answers are correct.

If you believe that someone is careless and irresponsible at work just because he is young. In this case you are applying______. Choose correct answer a. Confidence b. Prejudice c. Experience d. Accuracy

Should standards be used to identify whom to blame for problems?

A Framework for decision making: a. can help reduce the unexpected consequences of our actions. b. is not needed if the activity is legal. c. helps identify who gains the most from a decision.

Question 5 The primary purpose of establishing quality control policies and procedures for deciding whether to accepting a new client is to: 1. Enable the CPA fırm to attest to the reliability of the client. 2. Satisfy the CPA fırm's duty to the public concerning the acceptance of new clients. 3. Minimize the likelihood of association with clients whose management lacks integrity. 4. Anticipate before performing any fieldwork whether an unmodified opinion can be expressed. O 2 O 1 3 O4

Statement 1: Force Field Analysis (FFA) is great decision-making tool to identify the forces for and against a course of action. Statement 2: FFA focuses on causes not symptoms capturing the collective knowledge and experience of a group. Statement 3: FFA documents the more specific inputs, tasks, actions, systems, decisions, and outputs a. Statements 1,2 and 3 are false b. Statements 1,2 and 3 are true c. Only statement 1 is true d. None of the above e. Only statement 3 is false

1. Decision makers vary widely in the types of decisions they make, the methods of decision making they employ, the information they already possess or can obtain from other sources, and their ability to process information. Consequently, for information to be useful there must be a linkage between these users and the decisions they make. This link is: a. relevance. b. reliability. c. understandability. d. materiality. 2. Which of the following is not a major challenge facing the accounting profession: a. Nonfinancial measurements b. Accounting for hard assets. c. Timeliness. d. Forward-looking information.