Comments on: Management Persuasion Tactics http://blogs.law.harvard.edu/corpgov/2009/07/08/management-persuasion-tactics/ Sponsored by the HLS Corporate Governance Program Mon, 23 Nov 2009 18:31:21 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Rick Richman http://blogs.law.harvard.edu/corpgov/2009/07/08/management-persuasion-tactics/comment-page-1/#comment-310082 Rick Richman Tue, 14 Jul 2009 21:41:38 +0000 http://blogs.law.harvard.edu/corpgov/?p=2476#comment-310082 Management often strongly objects to a single exception, when a better course of action would be to view the item as part of an acceptable error rate. COSO/SEC/PCAOB all define "reasonable, but not absolute assurance", a concept that all to often doesn't exist in the minds of young auditors, and even some of the partners. Management often strongly objects to a single exception, when a better course of action would be to view the item as part of an acceptable error rate. COSO/SEC/PCAOB all define “reasonable, but not absolute assurance”, a concept that all to often doesn’t exist in the minds of young auditors, and even some of the partners.

]]> By: Francine McKenna http://blogs.law.harvard.edu/corpgov/2009/07/08/management-persuasion-tactics/comment-page-1/#comment-303688 Francine McKenna Wed, 08 Jul 2009 20:03:23 +0000 http://blogs.law.harvard.edu/corpgov/?p=2476#comment-303688 "We observe a lack of independence in auditor judgment when management persuasion tactics manipulate perceived explanation adequacy." I guess that's the explanation for all the frauds that got away too... “We observe a lack of independence in auditor judgment when management persuasion tactics manipulate perceived explanation adequacy.”

I guess that’s the explanation for all the frauds that got away too…

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