Question: Accounting involves professional judgments. We read and discussed papers that showed that human judgments can be flawed. While people are generally risk averse, there are

Accounting involves professional judgments. We read and discussed papers that showed that human judgments can be flawed. While people are generally risk averse, there are certain situations where that behavior changes. a) Discuss situations where decision makers tend to act contrary to normal. b) How might this impact an accountant/auditor when dealing with a company that is going through financial difficulties?

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