1. Identify the Issue Evaluate the evidence Accumulate and Appraise Alternatives Decide and Document Embrace EthicsEmbrace Ethics Beware of BiasesBeware of Biases C o n s i d e r C o n s t r a i n t s M o n i t o r y o u r M i n d s e t

2. Consider Constraints Bounded rationality What are some of the reasons why we don’t exercise logic and reason in decision- making? Environmental constraints What are some situational variables that might keep us from making good decisions? Consider whether the importance of the decision warrants negotiation or adjustment of the factors constraining the decision process.

3. Monitor your Mindset Framing the issue—how we frame the issue can determine the factors we consider (and the factors we exclude). The decision frame is related to and/or affects the Viewpoint— Think of how two different people can have different perspectives on the same issue. Objectives—Begin with the end in mind. Context—Recurring vs. individual decision; simple vs. complex; well-defined vs. ill- defined; objective vs. subjective In auditing, it is appropriate to adopt a professionally skeptical attitude Questioning mind Critical assessment of evidence Presumptive doubt

4. Identify the Issue Making a clear statement of the issue is the first step toward effective decision-making Identifying the preconditions that give rise to the issue can help to clarify what the issue is. Developing a format for stating the issue can be helpful If selecting from discrete, known alternatives Given [precondition 1] and [precondition 2] would it be better to choose [alternative a] or [alternative b]? If seeking an unknown optimal outcome Given [precondition 1] and [precondition 2] what would produce the optimal outcome? Beware of biases Representativeness—How can the representativeness bias affect our identification of the issue.

5. Evaluate the Evidence Before we can evaluate evidence, often we have to search for, derive, or generate the evidence by asking relevant questions, identifying sources of information, making calculations, or gaining an understanding of underlying processes that produce data Beware of biases Confirmation—How could confirmation bias affect our search for evidence? Availability—How could availability bias affect our search for evidence?

6. Accumulate and Appraise Alternatives List the alternatives that are available. Sometimes the best alternative is not one of the original options. we might have to generate a new alternative based upon what we have learned to this point. Objectively evaluate the alternatives in light of the evidence. Beware of biases Confirmation— Anchoring—

7. Decide and Document Don’t rush. Don’t be afraid to go back. Got bias? Got ethics? After deciding, document the process. Accountability Coaching

8. Embrace Ethics Often, important decisions have important ethical implications. In order to embrace our ethical responsibilities we need to: Moral sensitivity Moral reasoning Consider consequences— Discern Duties— Validate virtues and values— Exercise balanced decision-making—be open to each of the perspectives. Act courageously.

9. Decision-Making Checklist Consider Constraints:  Do I have the _____________________ I need to make the best decision? If not, _____________________________________________  Do I have the _____________________ capacity to make this decision?  Will _____________________play an appropriate role in this process?  Are there _____________________________that could interfere with the decision process (e.g., __________________________.) Monitor your mindset:  Have I considered the __________________________________ involved in this decision?  Would any of these ________________________ view the situation completely differently?  Do I have the __________________to make this decision (i.e___________________)? Identify the Issue  Have I stated the issue such that ___________________________would agree that it is a fair representation?  Have I taken care to state preconditions and ____________________________in a neutral way? Evaluate Evidence  Have I actively sought evidence ___________________________________?  Am I aware of a tendency ___________________________and considered _________________________ evidence?  Am I aware of a tendency to favor evidence that is ________________________rather than evidence that is _______________________? Appraise Alternatives  Have I ____________________of available options?  Have I been open to options that I _____________________________________?  Am I aware of ____________________and __________________? Decide and Document  Have I managed the constraints as well as I can?  Do I still have the right ________________________for this decision? Embrace Ethics  Am I aware of my tendency to view questions about right and wrong from a certain perspective and that there may be other perspectives that I should consider?  Consider consequences  Validate virtues and values  Discern duties

10. Decision-Making Checklist