Linkage Mechanism Research Of Performance Audit And Evaluation Based On Earnings Management Perspective

For a long time, the separation of evaluation from audit has existed extensively. It causes difficulties for enterprise audit and evaluation activities in creating values in coordination, thus led to the urgent need, which addressing to the important topic on controlling the earnings management behaviors and improving the economic profits. Nowadays, researches on the modern internal audit, performance evaluation and earnings management are active, but the linkage mechanism study is rare on performance audit and performance evaluation. This paper breaks through the traditional isolation that audit study does not link with the evaluation subject. Combining with the enterprise audit practice experience, the author specialized the research of performance audit and evaluation based on the earnings management perspective. The study aims at enriching the related research field on theory and Practice, promoting the audit and evaluation to create enterprise values, and enhancing the abilities of risk control.In according with the enterprise actual situation by interviews, surveys and evaluations, this paper reviews the results of previous studies systematically. From the view of the earnings management perspective, this paper designs the linkage mechanism between performance audit and evaluation from several aspects, such as the linkage Mechanism principle, the implementation step, business process and so on. Besides, the paper also includes an empirical test.This paper designs the performance audit and evaluation linkage mechanism. Through the linkage process reengineering of audit and evaluation, the supervision and evaluation information transmission and feedback mechanism have been established on the management level. The linkage mechanism designs transform the performance audit and evaluation to increase values and improve management behaviors. The empirical results show, linkage mechanism design scheme of performance audit and evaluation is feasible which can achieve the desired effect.The study found that the establishment of the linkage mechanism of the audit and evaluation can play complementary, synergistic advantages between departments, reduce earnings management behavior significantly, and promote the enterprise increase values.