Forecasting errors (Memory Bias)OverconfidenceConservatismRepresentativeness BiasFramingMental Accountingbias means that investors are slow in updating their beliefs in response to evidence.Regret AvoidanceLoss Aversion (Prospect Theory)

The correct option with proper explanation are as follows

Answered: OOOO Forecasting errors (Memory Bias)…

OOOO Forecasting errors (Memory Bias) Overconfidence Conservatism . bias means that investors are slow in updating their beliefs in response to evidence. Representativeness Bias

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter7: Planning The Audit: Identifying, And Responding To The Risk Of Material Misstatement

Section: Chapter Questions

Problem 6TFQ

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Question

Forecasting errors (Memory Bias)
Overconfidence
Conservatism
Representativeness Bias
Framing
Mental Accounting
bias means that investors are slow in updating their beliefs in response to evidence.
Regret Avoidance
Loss Aversion (Prospect Theory)

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