People who make information-based decision go through a series of fundamental steps in their decision-

making process.
Evaluate alternative. iv. Gather appropriate information.

Identify constraints. v. Choose the most acceptable

alternative.

Set objectives. vi. Identify alternative.

The most desirable sequence in the above steps is:

iv, ii, iii, vi, i, v

ii, iii, iv, vi, i, v

iii, ii, iv, vi, i, v

ii, iii, vi, iv, I, v

(rpcpa)

1. C
? The most desirable sequence in a decision-making process.
 The normal decision-making process follows the sequence of a reasoned scientific conclusion, as
follows: set objectives, identify constraints, gather information, identify alternative, evaluate
alternative, and choose the best alternative. On the given, the sequence is 3-2-4-6-1-5 (choice-letter
“c” is correct.)

2. A CPA should reject management advisory services engagement if

It would require him to make management decisions for an audit client.

The proposed engagement is not accounting related.

His recommendations are to be subjected to a review by the client.

He audits the financial statements of a subsidiary of the prospective client. (rpcpa)

2 A