Research On The Effect Of Management Persuasion Tactics To The Internal Control Judgment

The enterprise internal control deficiency audit evaluation is a very important part of the assessment process for the enterprise internal control executing mechanism, which mainly includes the self-assessment of the management and the attestation of the auditors. It is the coordination results base on multi-stakeholder .In the signal transmission game of enterprise internal control evaluation, management send the internal control effectiveness signal, and the auditor receive the signal. Before the management sending the internal control effectiveness signals, it is worth noticing that different types of management will active choose the internal control system with different degree effectiveness that based on their own consideration, which will be subjective for the evaluation result of internal control problem in internal control audit. However, evaluation result will impel the management to persuade the auditors to reduce evaluation standards of internal control deficiency .Therefore, this paper analyzed the relationship between the management persuasion tactics and internal control audit evaluation from the view of management using the method of experiment materials and the senior accountant training personnel as the respondents , the corresponding suggestions in the paper has certain significance for the internal control audit evaluation for our country . This paper researched the relationship between management persuasion tactics and the internal control audit deficiency evaluation using the empirical research method. The variables in this paper contain management persuasion tactics, the severity of internal control deficiency and the explanation reasonable degree of the management .The experiment results show that: (1) If there has the IT control deviation, when the management use concede tactics, the severity of internal control deficiency of the auditors evaluate severity will lower than deny tactics, and the explanation of reasonable degree will higher than the deny tactics. (2) If there has the manual control deviation, the auditors evaluate the severity of internal control deficiency and the management explanation of reasonable degree are similar when the management use both the concede tactics and the deny tactics.