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Inattentional blindness and its relevance to teaching forensic accounting and auditing

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  • Kleinman, Gary
  • Anandarajan, Asokan

Abstract

Inattentional blindness, also known as perceptual blindness, is the phenomenon of not being able to see things that are actually there. This concept is not covered in traditional accounting classes in general and forensic accounting and auditing in particular. We discuss why forensic accountants and auditors should be aware of inattentional blindness and we show how it may impact the behavior of the individuals investigating and being investigated. We use a video to illustrate how this concept could be meaningfully incorporated into a teaching curriculum with a focus on forensic accounting and auditing. In particular, we provide illustrations of how this video could be used in forensic accounting and auditing classes to heighten student awareness of how “blind spots” could adversely affect the investigation process. We conclude by using the Leeson/Barings scandal (involving the fraud that brought down Barings bank) to illustrate how inattentional blindness can occur in a real-life fraud situation. We also provide additional material showing the relevance of inattentional blindness to the Madoff Ponzi scandal.

Suggested Citation

  • Kleinman, Gary & Anandarajan, Asokan, 2011. "Inattentional blindness and its relevance to teaching forensic accounting and auditing," Journal of Accounting Education, Elsevier, vol. 29(1), pages 37-49.
    • Handle: RePEc:eee:joaced:v:29:y:2011:i:1:p:37-49
    DOI: 10.1016/j.jaccedu.2011.08.002
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    References listed on IDEAS

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    1. Gary Kleinman & Asokan Anandarajan & Ann Medinets & Dan Palmon, 2010. "A theoretical model of cognitive factors that affect auditors' performance and perceived independence," International Journal of Behavioural Accounting and Finance, Inderscience Enterprises Ltd, vol. 1(3), pages 239-267.
    2. Asokan Anandarajan & Gary Kleinman, 2011. "The impact of cognitive biases on fraudulent behaviour: the Leeson case," International Journal of Behavioural Accounting and Finance, Inderscience Enterprises Ltd, vol. 2(1), pages 40-55.
    3. Gary Kleinman & Dan Palmon, 2009. "Procedural Instrumentality and Audit Group Judgment: An Exploration of the Impact of Cognitive Fallibility and Ability Differences," Group Decision and Negotiation, Springer, vol. 18(2), pages 147-168, March.
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    Cited by:

    1. Samuel F. Johnson-Rokosu, 2015. "Integrating Forensic Accounting Core Competency into the Study of Accounting. Case of Nigeria Tertiary Institutions," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 1(3), pages 38-64, September.
    2. Ruhnke, Klaus, 2023. "Empirical research frameworks in a changing world: The case of audit data analytics," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 51(C).
    3. Apostolou, Barbara & Dorminey, Jack W. & Hassell, John M. & Watson, Stephanie F., 2013. "Accounting education literature review (2010–2012)," Journal of Accounting Education, Elsevier, vol. 31(2), pages 107-161.

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