TY - JOUR
T1 - Internal auditors' use of interpersonal likability, arguments, and accounting information in a corporate governance setting
AU - Fanning, Kirsten
AU - David Piercey, M.
N1 - Publisher Copyright:
© 2014 Elsevier Ltd.
Copyright:
Copyright 2015 Elsevier B.V., All rights reserved.
PY - 2014/11/1
Y1 - 2014/11/1
N2 - Internal auditors play an important role in influencing managers' judgments. Yet, the practitioner literature indicates that, because internal audit lacks the client services incentives of external audit, internal auditors often adopt a "policeman approach" that can lead to negative interpersonal relationships with managers. We investigate three variables fundamental to internal auditors' ability to influence managers: (1) internal auditors' interpersonal likability, (2) the information used to support their positions, and (3) whether they present that information in a thematically organized argument. We find that managers agree more with an internal auditor who is both likable and uses a thematically organized argument. We find further that this joint effect occurs regardless of whether the internal auditor's information is relatively supportive or unsupportive of his position. Overall, our theory and findings suggest that an internal auditor can achieve agreement from managers on important corporate governance issues with this fairly straightforward presentation tactic, even when the underlying information is relatively unsupportive and managers otherwise tend not to agree with the internal auditor's position. Our study contributes to accounting, psychology, and writing and discourse theories with new evidence of the effects of an argument structure (holding the underlying information constant) on users' judgments, and how those effects depend on the likability of the source of information. Our findings have important implications for internal auditors, managers, external auditors, and others interested in corporate governance.
AB - Internal auditors play an important role in influencing managers' judgments. Yet, the practitioner literature indicates that, because internal audit lacks the client services incentives of external audit, internal auditors often adopt a "policeman approach" that can lead to negative interpersonal relationships with managers. We investigate three variables fundamental to internal auditors' ability to influence managers: (1) internal auditors' interpersonal likability, (2) the information used to support their positions, and (3) whether they present that information in a thematically organized argument. We find that managers agree more with an internal auditor who is both likable and uses a thematically organized argument. We find further that this joint effect occurs regardless of whether the internal auditor's information is relatively supportive or unsupportive of his position. Overall, our theory and findings suggest that an internal auditor can achieve agreement from managers on important corporate governance issues with this fairly straightforward presentation tactic, even when the underlying information is relatively unsupportive and managers otherwise tend not to agree with the internal auditor's position. Our study contributes to accounting, psychology, and writing and discourse theories with new evidence of the effects of an argument structure (holding the underlying information constant) on users' judgments, and how those effects depend on the likability of the source of information. Our findings have important implications for internal auditors, managers, external auditors, and others interested in corporate governance.
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U2 - 10.1016/j.aos.2014.07.002
DO - 10.1016/j.aos.2014.07.002
M3 - Article
AN - SCOPUS:84910108330
VL - 39
SP - 575
EP - 589
JO - Accounting, Organizations and Society
JF - Accounting, Organizations and Society
SN - 0361-3682
IS - 8
ER -