ACCA publishes report into the importance of cognitive biases to the audit process
12 May, 2017
The Association of Chartered Certified Accountants (ACCA) has published a report which explores the importance of cognitive biases – underlying behavioural drivers that could influence decision making - to the audit process.
As calls for the exercise of increased professional scepticism grow, the report “explains how cognitive biases are central to improving the exercise of professional scepticism and to understanding the fundamental ethical principal of objectivity”.
It “recommends a holistic approach that encourages market participants to think actively about cognitive bias and take steps to minimise its impact on audit quality”.
A number of recommendations for standard setters, regulators and auditors are put forward to improve and encourage audit quality and tackle cognitive bias in the audit process.
The press release and report are available on the ACCA website.
