Navigating the perils of cognitive bias in accounting
Podcast episode
About the episode
As one of the most notorious cases of accounting fraud in history, the Enron scandal serves as a cautionary tale about the importance of ethical leadership and accountability. It also highlights the role cognitive biases can play in decision-making and how easily those biases can result in a negative outcome.
The energy giant’s bankruptcy in 2001 was largely caused by aggressive accounting techniques that had been used to hide debt and inflate financial statements.
However, executives were also guilty of confirmation bias, overconfidence bias and anchoring bias, among others.
They selectively emphasised positive information while downplaying negatives.
Listen to the full episode.
INTHEBLACK Out Loud is presented by CPA Australia.
CPA Australia publishes four podcasts, providing commentary and thought leadership across business, finance, and accounting:
Search for them in your podcast platform.
You can email the podcast team at [email protected]
Subscribe to INTHEBLACK Out Loud
Follow INTHEBLACK Out Loud on your favourite player and listen to the latest podcast episodes
