Auditing, disclosure, and verification in decentralized decision problems

When the misalignment in preferences reflects an agency bias - a bias in a decision maker's own action relative to that of the other - then the second decision maker chooses to audit in equilibrium. When the misalignment in preferences reflects an ideological bias - one decision maker prefers all actions to be biased relative to the other decision maker - then, for a large enough misalignment, the second decision maker chooses disclosure in equilibrium. Our results indicate that the ability to commit to forego the audit has value in the latter case.