Quantifying Audit Expectation Gap: A New approach to Measuring Expectation Gap

Open access

Abstract

The main objective of the study is at first identifying the expectation gap about audit responsibility and the second quantifying the expectation gap in Iran. In order to collecting data, a questionnaire designed and developed between auditors and investors. Collected data analyzed by employing non-parametric statistics test. The results show that there is expectation gap between auditors and investors in Iran. The current study employed a new approach in the world in order to quantifying the expectation gap. It gives the more strength to other researchers in order to measuring audit expectation gap in the world.

If the inline PDF is not rendering correctly, you can download the PDF file here.

  • AICPA (1993). Professional Standards Vol. 1 and 2 New York: American Institute of Certified Public Accountants.

  • ASCPA / ICAA (1994). A Research Study on Financial Reporting and Auditing-Bridging the Expectation Gap.

  • Bailey K.E. Joseph H. Bylinski and Michael D. Shields (1983). Effects of Audit Report Wording Changes on the Perceived Message Journal of Accounting Research Vol.21 No. 2 pp. 355-370.

  • Beasley Mark S. (1996). An Empirical Analysis of the Relation between the Board of Director Composition and Financial Fraud Accounting Review Vol.71 pp.443-465.

  • Beelde Ignace D. Sophine Cooreman and Helmut Leydens (1999). Expectations of Users of Financial Information with Regard to the Tasks Carried Out by Auditors Available at: http://scholar.google.com/scholar?hl=en&lr=&cluster=8413614050073704063

  • Canadian Institute of Chartered Accountants (1988). Report of The Commission to Study the Public’s Expectations of Audits (MacDonald Commission) CICA Toronto Canada.

  • Chandler Roy A. and John R. Edwards (1996). Recurring Issues in Auditing: Back to Future Accounting Auditing and Accountability Journal Vol.20 No. 2 pp. 4-29.

  • Cohen Commission (1978) Report of the Commission on Auditors’ Responsibilities; Conclusions and Recommendations New York: American Institute of Certified Public Accountants.

  • Darnill Andrew (1991). The Profession and the Public Accountancy May pp. 72-93.

  • Deegan Craiy and Michaela Rankin (1999). The Environmental Reporting Expectations Gap: Australian Evidence British Accounting Review Vol. 31 No. 3 pp. 313-346.

  • Defliese Patrick J. Murray B. Jaenicke Henry R. O’Reilly and Philip L. Hirch (1988). Auditing. Eleventh Edition. John Wiley&Sons.

  • Dejong David V. and James H. Smith (1984). The Determination of Audit Responsibilities: on Application of Agency Theory Auditing: A Journal of Practice and Theory Vol. 4 No. 1 pp. 20-34.

  • Epstein Marc J. and Marshall A. Geiger (1994). Investor Views of Audit Assurance: Recent Evidence of the Expectation Gap Journal of Accountancy January pp.60-66.

  • Giacomino D.E. (1994). Expanding the Auditor’s Role to Narrow the Expectation Gap Business Forum Vol.17 No.2 pp.295-331.

  • Gill Guadarshan S. and John W. Cosserat (1996). Modern Auditing in Australia Fourth Edition John Wiley & Sons Australia.

  • Godsell David (1992). Legal Liability and the Audit Expectation Gap Singapore Accountant Vol. 8 November pp. 25-28.

  • Guy Dan M. and Jerry D. Sullivan (1988). The Expectation Gap Auditing Standards Journal of Accountancy Vol. 165 April pp. 36-46.

  • Higson Andrew (2003). Corporate Financial Reporting: Theory and Practice London: SAGE Publications.

  • Hooks Karen L. (1992). Professionalism and Self-interest: A Critical View of the Expectation Gap Critical Perspective on Accounting Vol.3 No. 2 pp. 109-136.

  • Humphrey Christopher G. (1991). Audit expectations in Current Issues in Auditing London: Plul Chapma Publishing.

  • Humphrey Christopher G. W. Stuart Turley and Peter Moizer (1993). Protecting Against Detection: The Case of Auditors and Fraud Accounting Organizations and Society Vol.16 No. 4 pp. 313-331.

  • Jennings Marianne M. Dan C. Kneer and Philip M. Reckers (1993). The Significance of Audit Decision Aids and Pre-case Jurist’s Attitude on Perceptions of Audit Firm Culpability and Liability Contemporary Accounting Research Vol. 9 No.2 pp.489-507.

  • Kelly William A. and Lawrence C. Mohrweis (1989). Banker’s and Investors’ Perception of the Auditor’s Role in Financial Statement Reporting: the Impact of SAS No. 58 Auditing: A Journal of Practice & Theory Vol. 9 pp.87-97.

  • Kinney William R. (1993). Auditor Liability: Opportunities for Research Journal of Economics and Management Strategy Vol.2 pp.349-360.

  • Liggio Carel D. (1974). The Expectation Gap: The Accountant’s Waterloo Journal of Contemporary Business Vol.3 No.3 pp.27-44.

  • Martinis Michael Erming Kim and Aw Amy (2000). An Examination of the Audit Expectation Gap in Singapore Asian Review of Accounting Volume 8 No.1 pp.59-82.

  • Monroe Gary S. and David R. Woodliff (1993). The Effect of Education on the Audit Expectation Gap Accounting and Finance Vol.33 No.1 pp. 61-78.

  • Monroe Gary S. and David R. Woodliff (1994). An Empirical Investigation of the Audit Expectation Gap: Australian Evidence Accounting and Finance May pp. 47-74.

  • Murphy Prisecilla and Michael L. Maynard (1996). Using Judgment Profiles to Compare Advertising Agencies’ and Clients’ Campaign Values Journal of Advertising Research Vol. 36 No. 2 pp.19-27.

  • Percy Lan (2007). Fifteen Years of Reformation What Next? Managerial Auditing Journal Vol.22 No.2 pp.226-235.

  • Porter Brenda A. (1993). An Empirical Study of the Audit Expectation-Performance Gap Accounting and Business Research Vol. 24 No.93 pp. 49-68.

  • Porter Brenda A. John Simon and David Hatherly (2003). Principles of External Auditing (2 end Edition) West Sussex UK; John Wiley and Sons.

  • Pourheydari O. and Mina Abousaiedi (2011) “An empirical investigation of the audit expectations gap in Iran” Journal of Islamic Accounting and Business Research Vol. 2 Iss: 1 pp.63 - 76

  • Salehi Mahdi (2007). Reasonableness of Audit Expectation Gap: Possible Approach to Reducing The Journal of Audit Practice Vol. IV No. 3 pp.50-59.

  • Shaikh Junaid M. and Mohammad Talha (2003). Credibility and Expectation Gap in Reporting on Uncertainties Managerial Auditing Journal Vol. 118 No.6/7 pp. 517-529.

  • Sikka Prem N. Tony Puxty Hugh C. Willmott and Christine Cooper (1998). The Impossibility of Eliminating the Expectation Gap: Some Theory and Evidence Critical Perspectives on Accounting Vol.9 No.3 pp.299-330.

  • Sikka Prem N. Tony Puxty Hugh C. Willmott and Christine Cooper (1992). Eliminating the Expectations Gap? ACCA-Research Report No.28: London.

  • Singh Rajiv K. (2004). Bridging All the Expectation Gap-The Changing Role of Concurrent Auditors Available at: icai.org/icairoot/publications/complimentary/cajournal_may04/p1201-07.pdf -

  • Singleton Brain G. (1990). Bridging the Expectation Gap Accountancy October pp. 79-84.

  • Trauth Eileen M. Douglas W. Farwell and Denis M. Lee (1993). The ISO Expectation Gap: Industry Expectations Vs. Academic Preparation MIS: Quarterly Vol.17 No.3 pp. 47-72.

  • Tricker Bob R. (1982). Corporate Accountability and the Role of the Audit Function in Hopwood A. G. Bromehich M. and Shaw J. (eds) Auditing Research: Issues and Opportunities London: Pitman Books.

  • Tweedie David (1987). Challenges Facing the Auditors: Professional Fouls and the Expectation Gap The Deloitt Haskins and sells Lecture University College Cardiff April 30 1987.

  • Woodliff David R. (1995). An Empirical Investigation of Audit Expectation Gap Unpublished PhD Thesis University of Western Australia.

Search
Journal information
Cited By
Metrics
All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 1190 625 40
PDF Downloads 595 322 25