Confirmation Bias can be defined as the tendency to search for, interpret, favour, and recall information that confirms or supports one’s prior personal beliefs or values.
As the Wirecard scandal rumbles on and the role of EY is further scrutinised we cannot help but wonder what went wrong and more importantly who is to blame.
In reading about it was hard not to notice the parallels to the role of rating agencies in the 2008 crisis where there was a fundamental misalignment of judgement because money is involved.
Has something similar happened here? Possibly, but we can’t say for certain. However, it is worth noting than ignorance is not, in fact, the same as innocence.
