Bridging the Audit Expectation Gap: The Perception of ICAN Members (original) (raw)
Related papers
2013
he study sought to ascertain if reducing the audit expectation gap would led to greater public confidence in corporate financial information. Self-administered questionnaires were used in the study. The data generated from the responses of the subjects were analyzed using descriptive and statistical analysis through the computer (Eview3.1).The result showed that the higher the audit expectation gap, the higher the negative impact on the credibility of corporate financial reports. Thus, audit expectation gap creates doubt on the reliability of financial statements. Based on the findings and conclusion, it was recommended that the scope of auditors’ responsibilities should be expanded; companies should create a forum for regular interface between management, auditors and financial statement users to enhance confidence in financial reports and strengthening the audit committee and regulatory oversight of auditors to enhance their respective performances.
Narrowing the Expectation Gap in Auditing: The Role of the Auditing Profession
Research Journal of Finance and Accounting, 2013
The study sought to ascertain the role of the auditing profession in narrowing the audit expectation gap. Selfadministered questionnaires were used in the study. The data generated from the responses of the subjects were analyzed using descriptive and statistical analysis through the computer (SPSS 16.0).
THE ROLE OF AUDIT IN IMPROVING THE QUALITY OF INFORMATION PRESENTED IN THE FINANCIAL STATEMENTS
2011
The general objective of financial statements is to provide information about the financial position, performance and cash flows of an enterprise that is useful for a wide range of users in making economic of business decisions. The financial statements also present the results of resources management by the company's management. For this reason, financial statements prepared and published by organizations are of interest for a wide range of users: investors, managers, employees, customers, creditors, bankers, government and its institutions, citizens. Experience has shown explicitly that there is a conflict of interest between those who collect, process and agregate accounting information and the information users. Often, users show a lack of confidence in accounting information, because the users who produce this information usually are not independent from the operations and the situations presented. Possible major economic consequences that may result have determined as necessary interposing financial auditors with the main objective of increasing credibility of the financial statements published by companies..
Audit Expectation Gap between Auditors and Users of Financial Statements
European Journal of Business and Management, 2014
The purpose of this study is to identify the variable(s) that is/are base of audit expectation gap between auditors and users of financial statement which includes bankers (treasury fund managers) and investors (individual as well as corporate). The variables used are Audit reliability, Audit responsibility and Usefulness of audited financial statements. The data was collected through questionnaire which was distributed in sample size n=300 at random consisting of 100 subjects from each of three groups and n=259 questionnaire was received back. The questionnaire consists of two sections, first section collected demographic data and other section enclosed 16 semantic differential belief statements. The statistical technique "Independent sample t-test" was performed in order to recognize the variable(s) that is/are base of audit expectation gap. This study finds that the gap is existed between auditor and investor in two variables which are Reliability and Usefulness of audited financial statement. The reason behind this gap is lack of proper education and understanding regarding audit standards and audit practices so this gap will be reduce by giving adequate knowledge and awareness of audit to the users of financial statements.
AUDITORS' CHARACTERISTICS AND QUALITY OF FINANCIAL INFORMATION
IMPACT: International Journal of Research in Business Management, 2018
Auditors' characteristics have effects on the quality of financial information which is fundamental to users' decision-making. This study was done in order to evaluate the auditors' characteristics and quality of financial information provided. The main problem studied is that management prepares financial statements that contain financial information, in order to be useful for decision making by different stakeholders and management services, a proper examination of such information in today's business environment and legal framework requires the assurance, credibility, and confidence from a third party that will certify what managers have reported. Thus, auditors are required to demonstrate certain qualities in conducting such work. This study followed exploratory research design. Findings demonstrated that auditors should possess technical and functional qualities (ethical skills, technical and competence skills, independent mind and in appearance, objectivity and other human skills for communication and relationships) which all help them to be effective examiners and assessors of financial information quality in terms of relevance, reliability, comparability, and understandability for clear decision making. The empirical studies demonstrated the negative effects of bad auditors' behaviors on violation of audit and professional standards and the study concluded and recommended that audit services are considered as financial, medical services to different beneficiaries and that auditors should protect their profession and stakeholders' interests.
The indispensability of the role of education in the incessant calls for attempts at addressing the Audit Expectation Gap (AEG) problem in extant literature seems unquestionable. Interestingly however, these calls for responding to the AEG problem through education appear to have been skewed towards one mode. Educating users with the view to reconciling their views on financial statement audits to the views of the accounting profession regarding the work and role of auditors seems dominant. However, notwithstanding the litany of evidence of prior attempts to address AEG problem through this mode of education, the problem seems to be persisting, and in some cases and contexts, appears to be escalating. Thus exploring different approaches regarding the nature and type of education to adopt could be interesting. This conceptual paper attempts to address this fundamental question by proposing a circumscribed mode of education; educating users on the principal areas of expectations that ...
Cebong Journal
This research is to examine and provide empirical evidence that the factor of expertise, experience, professional skepticism of auditors and audit situations has no effect or no relevance to the provision of audit opinion on the financial statements of the entity. This research was conducted using the sampling method, namely purposive sampling, with the type of quantitative research. The data was analyzed using multiple regression analysis models. Hypothesis testing is done to determine the extent of expertise, experience, professional skepticism of auditors and audit situations affect the relevance of the provision of audit opinion on the financial statements of entities either partially or simultaneously.
Importanct of audit in corporate firms
The financial audit remains an important aspect of corporate governance that makes management accountable to shareholders for its stewardship of a company. The audit serves as a signaling mechanism to shareholders of a company that information provided by the company's directors can be relied upon. However despite all positive aspects attributable to the roles played by financial auditors, recent experience indicate that companies have not managed to reach their optimal operational efficiency level either because of failure to engage effective independent auditors or failure to accord the auditors their rights as auditors in their engagement execution. The objectivesof the study was to examine the role of financial audits, internal control systems, financial statements, analytical procedures and the role of auditor's reports on effective corporate governance in companies.