Auditing expectation gap or simply expectation gap is the term used to signify the difference in expectations of users of financial statements and auditor’s expectation concerning audited financial statements although its about expectations but still its scope and meanings have been defined in . Audit expectation gap is critical to the auditing profession because the greater the unfulfilled expectations by the society, the lower is the credibility, earnings potential and prestige associated with the. The expectations gap is an issue for auditors as a greater “expectations gap” would lead to lower credibility, earning potential and prestige associated with their work 15 it is also an issue for the public and investors in.
The expectation gap in auditing and well-publicised corporate collapses and the subsequent implication of the reporting auditors have highlighted the audit expectation gap apparently, public . The auditor profession has always faced the problem of the audit expectation gap these differences of expectations emerge from the perception society has in relation to: the quality of the audit work, the performance of the auditors, the result of their work and their objectives in comparison with what is expected from these professionals. The audit expectation gaps show that auditor and stakeholder have the different conception and assessment of audit, auditor overrate their performance compared with the others, and there are performance gap, audit standard gap and unreasonable expectationat last, it puts forward the way to narrow the gap on the three gaps. Abstract audit expectation gap is the difference between what the public expect auditors to do and what auditors do given the significance of the expectation gap, it is not surprising therefore that a.
The expectation gap - the difference between expected performance from the accountant's perspective and what the user of the financial statements expected from the audit examples of the expectation gap in auditing. The expectation gap in auditing the expectation gap in auditing hian chye koh e‐sah woo 1998-04-01 00:00:00 there is concern that auditors and the public hold different beliefs about the auditors’ duties and responsibilities and the messages conveyed by audit reports. View audit expectation gap research papers on academiaedu for free.
This tutorial takes students through the topic -the expectation gap in auditing- we explore the meaning of expectation gap, some common misconception about audit and suggestions to narrow the . The audit expectation gap is the difference between what the public and users of financial statements perceive the role of an audit to be, and what the audit profession claims is expected of them during the audit. The audit expectation gap is critical to the auditing profession because the greater the unfulfilled expectations from the public, the lower is the credibility, earnings potential and prestige associated with the work of auditors(lee et al, 2009).
Audit expectation gap implies that the role senders are dissatisfied with the performance of auditors (koh and woo, 1998) the general opinion, amongst users of . The issue of “audit expectation gap (aeg)” has been very significant to the accounting profession since mid 1970s and continues to be debated u. auditing expectation gap: nigerian perspective abstract the audit expectation gap is critical to the auditing profession because the greater the unfulfilled expectation from the public, the lower the credibility earning potential and prestige associated with the work of auditors.
Another audit expectations gap relates to information about the audit (information gap) stakeholders and market participants may need or want more information about the audit and the results of the audit, the nature and extent of the audit procedures performed, and the quality of the audit. Audit expectation gap hypothetically the term review hole in desires rose amid the 1970s from an examination by liggio (1974, 20) in which he characterized.
Closing the expectation gap in deterring and detecting financial statement fraud: a roundtable summary 8 internal audit, it was acknowledged, depends on how the company utilizes it, so. The internal audit role—is there an expectation gap in your organization 3 of 6 wwwqfinancecom the other dimensions can all be seen in these roles in practice and in the standards and supporting. This paper presents the findings of an empirical study on the audit expectations gap concerning the role of the auditor in corporate fraud cases. The ―expectations gap‖ refers to the ‗difference between what users expect from the auditor and the audited financial statement and the reality of what an audit is‘.