Mitigating Heuristic Biases in Accounting for Tax Uncertainties

How can we mitigate the influence of biases in order to enhance our decision-making accuracy in accounting for uncertain tax positions even with a shortage or absence of critical facts and information?

Let’s start by identifying counteractions we can employ to address the specific types of biases. Whether it is prudent to employ those counteractions may depend upon a variety of factors including, materiality, the recurring/non-recurring nature of the item, data and resource availability, the relevant time frame for preparation and review, cost of implementation/action, and other factors. Those items need to be balanced against the benefits of using counteractive ...