This paper evaluates the effects that cognitive bias can have on fraud examiner judgment and decision-making. We draw on extant literature in accounting, auditing, and psychology to describe 11 specific biases that can undermine fraud examiner performance. Specifically, we use real-world examples from highly experienced anti-fraud professionals to consider each distinct bias given the unique engagement objectives, methods, relationships, and standards of evidence found in fraud examinations. We then discuss specific avoidance and mitigation strategies that fraud examiners can use to manage cognitive bias effects and improve their judgments and decisions. We conclude by suggesting the need for initial and continuing education in the area for professionals and future research to increase understanding in the area.

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