The Role of Cognitive Bias in Auditor Judgment and Decision-Making Processes Under Time Pressure

Posted: May 18, 2014

• Reed Coleman
• Alice Newman
• Maddox Pierce

Abstract

This research investigates the complex interplay between cognitive biases and auditor judgment in high-pressure environments, presenting a novel framework for understanding decision-making processes in auditing contexts. While previous research has examined cognitive biases in isolation, this study introduces an integrated approach that combines behavioral economics, cognitive psychology, and information systems theory to analyze how multiple biases interact under time constraints. We developed a unique experimental methodology using simulated audit scenarios with varying time pressures, measuring the manifestation and interaction of confirmation bias, anchoring, availability heuristic, and overconfidence bias. Our findings reveal that time pressure does not uniformly amplify all biases but creates specific bias amplification patterns, with confirmation bias showing the most significant increase under moderate time pressure, while anchoring effects paradoxically decrease under extreme time constraints. The research demonstrates that traditional debiasing techniques become less effective as time pressure increases, suggesting the need for context-specific intervention strategies. This study contributes original insights by identifying bias interaction patterns and proposing a novel 'bias cascade' model that explains how initial biased judgments trigger subsequent biased decisions in auditing workflows. The implications extend beyond auditing to broader domains of professional judgment under pressure, offering a fresh perspective on cognitive limitations in time-sensitive decision environments.