Concede or deny: Do management persuasion tactics affect auditor evaluation of internal control deviations?

  • Wolfe C
  • Mauldin E
  • Diaz M
  • 56


    Mendeley users who have this article in their library.
  • 17


    Citations of this article.


In an internal control audit, the consequences and assessment subjectivity of control problems motivate managers to try to persuade auditors to lower the as-sessed severity of an observed control deviation. We report an experiment in which 106 audit seniors evaluate either information technology (IT) or manual control devia-tions that are potentially indicative of significant deficiencies, after exposure to persua-sion tactics based in either concession or denial. For IT control deviations, we find that auditors assess the significance of deficiency lower and the perceived adequacy of management's explanation higher for concessions than for denials. For manual control deviations, we find no differences between concessions and denials. Our results pro-vide evidence of a systematic bias in auditor judgment and indicate a rationale for the ubiquity of management persuasion attempts around control deviations—sometimes they work.

Author-supplied keywords

  • Audit judgment
  • Internal control deficiency
  • Persuasion tactic

Get free article suggestions today

Mendeley saves you time finding and organizing research

Sign up here
Already have an account ?Sign in

Find this document


  • Christopher J. Wolfe

  • Elaine G. Mauldin

  • Michelle Chandler Diaz

Cite this document

Choose a citation style from the tabs below

Save time finding and organizing research with Mendeley

Sign up for free