May 10 2017
The Association of Chartered Certified Accountants has released a new report calling for more professional skepticism on the part of auditors.
The ACCA’s report recommends market participants consider cognitive bias—the behavioral drivers that could influence decision making—more actively and take steps to minimize its impact on audit quality.
The report advises standard-setters to design auditing standards to mitigate the impact of known biases on decision-making. The ACCA suggests that, among other methods, standard-setters review possible “bias” within auditing standards and stress the importance of minimizing known bias in application guidance or other explanatory materials.