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?

1. Identify and explain at least TWO hidden biases accounting professionals face.

2. Explain how the biases in (i) may assist the accounting professionals in their work.

3. Outline ONE limitation of each of the hidden biases selected from (i).

4. Your friend thinks that behavioural issues will be irrelevant once she starts working as an accountant. Explain TWO reasons why you agree or disagree with her.

5. Your company would like to improve financial disclosures using the Brunswik Lens model. Explain one benefit and one limitation of this approach.