Discuss the Human Information Processing (HIP) and its disclosure implications for accountants?

HUMAN INFORMATION PROCESSING: The theory deals with how people receive, integrate, stores ,retrieve, and use the information.Itis an approach to the study of human thought as well as human behavior which was in the developed beginning of the 1950s, an alternative to the behavioral approaches that was popular at that point of time.

Stages of HUMAN INFORMATION PROCESSING:

1) Encoding (collecting and representing information)

2)Storage (holding information)

3)Retrieval (obtaining the information when needed)

Human Processing information- It involves taking raw information and thereby making it more useful by putting it into appropriate context. Information processing means processing new data, which includes a wide number of steps: acquiring, inputting, validating, manipulating, storing, communicating, and disposing.