Accountants are actually better at spotting financial fraud when they stop thinking about it and rely on unconscious processing.
March 31, 2026
Original Paper
Using Unconscious Thought to Improve Evaluations of Complex Accounting Estimates
SSRN · 6473638
The Takeaway
While we assume complex financial analysis requires intense conscious focus, this study found that auditors are more likely to miss subtle patterns of bias when they over-analyze. 'Sleeping on it' or using unconscious thought allows the brain to integrate complex data points that conscious logic often overlooks.
From the abstract
Complex accounting estimates are becoming increasingly important to financial statements. Yet, such estimates create ample opportunities for bias. Although both management and independent auditors are tasked with ensuring these estimates are free from error and bias, evaluating the appropriateness of these measures can be quite difficult. Drawing on Unconscious Thought Theory, we predict and find across three experiments that engaging in unconscious thought can improve accounting practitioners'