The Research On The Anchoring Effects In The Assessment Of The Risk Of Material Misstatement

So far the academics on the factors of assessment of the risk of material misstatement are largely normative and has not been proved by experimental research. It dose not take Specific judgments and decision-making model into account when in the face of a number of objective and subjective factors. As the introduction of the behavioral economics theory into the field of audit judgement, the behavioral economics study of the risk of material misstatement should be concerned about, however, the research in this area is still a bland both at home and abroad .Based on this situation, This paper first overview the relevant theory and tested it from the experimental perspective, then analyzing the affecting weight of the factors of the risk of material misstatement comprehensively Using questionnaire survey methods, and carried out experiments with employees from a number of accounting firm in Hunan province. Examined the anchoring and adjustment effect in the process of assessment of the risk of material misstatement , Studies concludes that, from the firm's point of view, the evaluator think that the impact of internal control has the biggest impact on the assessment of risk of material misstatement, Financial factors are the second , the strategic factors ranked third, And environmental factors have minimal impact on the assessment of the risk of material misstatement, In the uncertain environment, the assessment results of risk of material misstatement of the previous year will produce anchoring effects on the Evaluators. Namely, the Evaluators will re-adjust the level of the risk of material misstatement when obtaining new information, the design and implementation of risk assessment process, Financial condition of the entity both have significant impact on Assessment of the risk of material misstatement, If the management have designed its risk assessment process and has been implemented effectively ,the evaluator will most likely turn down the level the risk of material misstatement, contrarily, will turn up the level of risk of material misstatement, If the financial situation is good , the evaluator will most likely turn down the level of the risk material misstatement, otherwise, the evaluator will most likely turn up the level of the risk of material misstatement, in the end, the Author propose the corresponding Policies and proposals.