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Unformatted text preview: URL: www.ijar.lit.az 140 I NTERNATIONAL J OURNAL Of A CADEMIC R ESEARCH Vol. 1. No. 1. September 2009 LCC: HJ9701-9940 UDC: 657.631.8 AUDIT EXPECTATION GAP: INTERNATIONAL EVIDENCES M.Salehi a , V.Rostami b a Accounting and Management Department, Zanjan University E-mail: firstname.lastname@example.org b Faculty Member of Pyame Noor University, Zanjan Branch (Iran) ABSTRACT This paper focuses on the concepts and evidences of audit expectation gap. In first part it covers the evolution of audit, and causes of audit expectation gap. In the next part it covers the evidence of audit expectation gap. This study brings out the nature of audit expectation gap prevailing in different countries of the world. The major countries were Australia, Singapore, Malaysia, United Kingdom, New Zealand, United States, Saudi Arabia, Bangladesh, China and Egypt. These studies bring out the differences in perceptions on audit expectation gap amongst different sections of the society. Most of the studies ascertain the auditors and the publics view of the roles and responsibilities of auditors through the use of questionnaire surveys. The approach to defining audit expectation gap varies from one person to another. However, there is a consensus among the researchers that the gap arises due to over-expectations of users regarding the functions of an auditor and lack of knowledge about auditors role and responsibilities have made the users to expect high. The literature also reveals that educating the public about the objects of an audit, auditors role and responsibilities will help to narrow the audit expectation gap. Key words: audit, auditor, responsibilities, audit expectation gap 1. INTRODUCTION Accounting and auditing are the critical and integral components of any economic enterprise. If accounting keeps track of transactions as a basis for information provisioning through financial reporting to the end-users, audit authe- nticates the correctness of record keeping and the appropriateness of information provisioning through its authentication based on professional code of ethics and regulation. In this process of accounting dynamics, auditors occupy primary importance in bridging the communication gap between managements of enterprises and end-users of published fi- nancial reports through their authentication, reliability and correctness of financial reporting. In nutshell, the auditor plays a centrifugal as well as a centripetal role in the accounting world. In the present scenario, the auditor is not only entrusted with the finance procedural audit, but also is expected to spearhead the efficiency audit and propriety audit, the need for which have become appropriate at this stage. Large-Scale companies were established in the middle of 18th century....
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This note was uploaded on 03/20/2012 for the course ACCOUNTING 20111:010: taught by Professor Marjorieyuschak during the Spring '10 term at Rutgers.
- Spring '10