Norma Montague, assistant professor of accounting at the School of Business, co-authored the cover story for the February issue of the Journal of Accountancy. The article, “I’m not biased, am I?“, elaborates how five frequently occurring biases can affect the business judgement of auditors or other financial professionals. They are availability, anchoring and adjustment, overconfidence, confirmation bias and rush to solve.
CPAs pride themselves on performing their duties with ethics, integrity, and due professional care. But even the most conscientious preparers and auditors need to be aware of hidden biases to which humans are susceptible. Could the financial statements you prepare or audit be affected by unconscious biases even if there is no intentional manipulation? Before you continue reading this article, the authors suggest you complete the decision-making quiz.
Read the full story in the Journal of Accountancy.