Stakeholders’ Trust towards the Role of Auditors: A Synopsis of Audit Expectation Gap

2019 ◽  
Keyword(s):  
Expectation Gap

Public accounting profession and fraud detection responsibility

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ni Wayan Rustiarini ◽  
Anik Yuesti ◽  
Agus Wahyudi Salasa Gama
Keyword(s):  
Goal Orientation ◽  
Self Efficacy ◽  
Fraud Detection ◽  
Individual Performance ◽  
Professional Commitment ◽  
Personal Factors ◽  
Accounting Firms ◽  
Content Type ◽  
Expectation Gap

Purpose The study aims to examine the influence of auditor personal factors, such as goal orientation, self-efficacy and professional commitment to auditor’s responsibility to detect the fraudulent, particularly in small accounting firms. Design/methodology/approach The authors surveyed 86 auditors working in small accounting firms in Bali Province, Indonesia. Findings The results prove the role of self-efficacy as a mediating variable in the relationship of goal orientation and auditor responsibility. This result at once confirms that self-efficacy can improve individual performance even in complex tasks. This study also proves the role of professional commitment as a mediator variable. Research limitations/implications Given that the respondents came from small accounting firms, these findings are not intended to be generalized with auditors in large accounting firms. Practical implications These findings highlight essential efforts to reduce audit expectation gaps between auditors and the public. The small accounting firms’ leaders must to alignment workplace organizational goals and organization professional goals. A dualism of purpose causes the auditor to fail to fulfill the responsibility of fraud detection. Social implications There is a severe audit expectation gap related to the auditor’s role in detecting fraud. This finding expected to answer public questions related to auditors’ ability and responsibility in small accounting firms in detecting fraud. Originality/value There is limited research on auditor responsibility, particularly in small audit firms in developing countries. Also, there is still debate scientific about the influence of goal orientation, self-efficacy and professional commitment to auditor performance.

scholarly journals Corporate governance and auditors’ expectation

2020 ◽  
Vol 3 (2) ◽  
pp. 166-193
Author(s):  
Lateef Fijabi ◽  
Keyword(s):  
Corporate Governance ◽  
Audit Committees ◽  
Regulatory Agencies ◽  
Corporate Accountability ◽  
The Public ◽  
Accountability System ◽  
Expectation Gap ◽  
Code Of Corporate Governance ◽  
The Impact

This study investigated the impact of Code of Corporate governance on the auditor’s expectation gap, following the implementation of the Nigerian corporate governance code. The study outcomes were based on the literature review, the analysis of the qualitative data and discussions of generated themes. The results revealed that adopting effective corporate governance (accountability) system positively contributes in narrowing the audit expectation gap due to the increasing interest in the role of accountability in fighting corruption in Nigeria. The Study recommends; the need for continued sensitization of the public, by both the auditing profession and other stake holders on the role and duties of the auditor, management and the board to avoid expectation gap from the public. The CBN, NAICOM, PENCOM and NCC should implement and enforce the approved Code of Governance. Keywords: Audit Expectation Gap, Corporate Accountability, Audit committees, Code of Corporate Governance, Regulatory agencies.

scholarly journals An Investigation of Expectation Gap between Independent Auditors and Users from Auditing Services Related to the Quality of Auditing Services Based on Their Role and Professional Features

2017 ◽  
Vol 2 (2) ◽  
pp. 36-47 ◽  
Author(s):  
Fatah Behzadian ◽  
Naser Izadi Nia
Keyword(s):  
Stock Exchange ◽  
Financial Statements ◽  
Analytical Framework ◽  
Professional Experience ◽  
Factors Affecting ◽  
Expectations Gap ◽  
Expectation Gap ◽  
Audit Firms

In this research, using an analytical framework on factors affecting the quality of auditing services, we consider factors that affect an expectations gap in providers and users of auditing services related to factors affecting auditing quality. Effective factors studied in this regard are professional features, including the professional role of individuals in the auditing process (auditors against preparers of financial statements), professional experience of individuals, professional rating and size of auditing firms. The first statistical society consists of certified public accountants (CPAs) working in the auditing organization and audit firms in Iran, and the second statistical society consists of all investment companies that operate under the supervision of the Tehran Stock Exchange Organization. Based on the results of the research, the role of professionals in the auditing process is not effective as an independent auditor or financial statements provider, as well as the professional experience of individuals in the expectations gap from factors affecting auditing quality, while the size and qualities of the auditing firms were influenced by the expectations gap of individuals in the field of auditing regulation.

scholarly journals ANALISIS EXPECTATION GAP ANTARA APARAT PENGAWASAN INTERN PEMERINTAH (APIP) DAN PEMANGKU KEPENTINGAN MENGENAI PERAN DAN INDEPENDENSI APIP DALAM PENGAWASAN PENYUSUNAN ANGGARAN BELANJA DAERAH PADA PEMERINTAH PROVINSI SULAWESI UTARA

2016 ◽  
Vol 7 (2) ◽  
Author(s):  
Yuanita Iva Maya Singal ◽  
David Paul E. Saerang ◽  
Herman Karamoy
Keyword(s):  
Human Resources ◽  
Organizational Structure ◽  
Qualitative Approach ◽  
Roles And Responsibilities ◽  
North Sulawesi ◽  
Expectation Gap ◽  
Regional Budget ◽  
The Government

As an institution of supervision Inspectorate have a responsibility to review  the drafting of RKA SKPD. In carrying out the functions of supervision, often found the existence of the expectation gap i.e. a difference of wishes or expectations of stakeholders towards the APIP work with the reality of the work shown by the APIP. Expectations of stakeholders sometimes exceeds what the roles and responsibilities of APIP. This research aims to analyze the expectation gap between APIP and stakeholders (auditee) regarding the role and independence of the APIP in supervision of the preparation of the regional budget in the Government of North Sulawesi province. This study used a qualitative approach by taking the location of research in 5 (five) SKPD on the Government of North Sulawesi province with criteria of informant is APIP in North Sulawesi Province of Inspectorate with experience more than 5 (five) years and auditee has the task drafting of RKA. The results of this study showed that at the role of APIP, there is no an  expectation gap but for the issue of perception the limitation of responsibility of APIP, need to be evaluated especially in things still lacking with regards to his responsibilities include improving the quality of human resources such as the understanding of the regulation and its changes and also their skill. Whereas toward independence, on the issue of the perception of the independence of APIP there is no expectation gap but about the influence of the organizational structure of the role and influence of the role of APIP as a consultant found the existence of the expectation gap.   Keywords :  Expectation  Gap, The  Role  Of  APIP, Independence  Of  APIP, Supervision of  The Formation Of The Regional Budget

scholarly journals The Audit Expectations Gap and the Role of Audit Education: Evidence from Sri Lanka

2017 ◽  
Vol 3 (1) ◽  
Author(s):  
J.S. Kumari ◽  
A.R. Ajward ◽  
D.B.P.H. Dissabandara
Keyword(s):  
Sri Lanka ◽  
Educational Policy ◽  
Questionnaire Survey ◽  
Policy Implications ◽  
Sri Lankan ◽  
Expectations Gap ◽  
Expectation Gap ◽  
National University ◽  
The Status

The study examined the status and impact of audit education on the audit expectation gap, as existence of such a gap is noted to be harmful to the accounting and auditing profession. Accordingly, undergraduates of a regional national university in Sri Lanka (in three categories as: undergraduates who had not followed an auditing course, who had followed a basic auditing course, and who had followed an advanced auditing course) and professional auditors were selected and a questionnaire survey that included statements on the duties of the auditors was administered. The results of the independent sample t-test indicate the existence of an audit expectation gap in the Sri Lankan context; and that audit education had an effect in reducing such a gap. However, further analysis indicated that only an advanced auditing course had resulted in minimizing such expectation gap (particularly in reducing the unreasonable expectation gap) compared to who had followed a basic auditing course. These findings are expected to have significant educational policy implications.

scholarly journals Existence of the Audit Expectation Gap and Its Impact on Stakeholders’ Confidence: The Moderating Role of the Financial Reporting Council

2020 ◽  
Vol 8 (1) ◽  
pp. 4
Author(s):  
Taslima Akther ◽  
Fengju Xu
Keyword(s):  
Financial Reporting ◽  
Structural Equation ◽  
Active Role ◽  
Equation Model ◽  
The Other ◽  
Environmental Disclosure ◽  
Expectation Gap ◽  
Social And Environmental Disclosure ◽  
Corporate Social

This paper empirically emphasizes the existence of the audit expectation gap and its impact on stakeholders’ confidence, moderated by the active role of the financial reporting council. As a maiden attempt to portray the relationship, a higher-order model has been constituted and assessed with the pragmatic exploration, smearing the partial least squares structural equation model (PLS-SEM). The data contains 174 respondents as auditors, investors, investment and credit analysts, and regulatory agencies in Bangladesh. The study explores audit expectation gap from diverse aspects, such as auditors responsibility for fraud detection, meaning, and usefulness of the audit report, auditors providing the non-audit services, auditors’ responsibility for going concern reporting, and also an unmet expectation for the other assurance services, such as assurance on the other parts of the annual report beyond the financial statements, like management discussion and analysis and corporate social and environmental disclosure. The findings suggest that the audit expectation gap is negatively related to stakeholders’ confidence and the greater the audit expectation gap is, the lower stakeholders’ confidence is in the audit. Auditors maintaining perceived independence and improving the level of communication with users will diminish the audit expectation gap and induce stakeholders’ confidence simultaneously. Moreover, the active role of the financial reporting council acts as a moderator to ensure the auditors’ perceived independence. The result of the study motivates the policymakers to concentrate on the users’ audit-related expectations and also intends the importance of independent audit oversight.

Graduates’ expectation gap: the role of employers and Higher Learning Institutes

2015 ◽  
Vol 7 (2) ◽  
pp. 372-384 ◽  
Author(s):  
Talat Islam ◽  
Ishfaq Ahmed ◽  
Zainab Khalifah ◽  
Misbah Sadiq ◽  
Muhammad Asim Faheem
Keyword(s):  
Job Satisfaction ◽  
Organizational Commitment ◽  
Work Environment ◽  
Higher Learning ◽  
Leadership Communication ◽  
Content Type ◽  
Expectation Gap ◽  
The Difference ◽  
Practical Implications

Purpose – The purpose of this paper is to examine the difference between fresh graduates’ expectations and actual experiences regarding work environment. Design/methodology/approach – A questionnaire-based survey was employed on 170 Malaysian fresh graduates. They were evaluated on the basis of their expectations and actual experiences which enabled the researcher to determine gaps. Findings – Using paired sample t-test it was found that there exist gaps regarding what fresh graduates expect and their actual experience regarding work environment. Leadership communication and decision making were found to be significantly related with job satisfaction whereas leadership was found to be related with organizational commitment. Research limitations/implications – The study used a selected sample from Malaysian graduates, the results might be different if samples are taken from a geographically different area. Practical implications – The study has implications for fresh graduates, employers and higher learning organization. Originality/value – Limited studies have examined fresh graduates regarding what they were expecting and actually experienced in the workplace. Moreover, the study also identifies how these gaps influence graduates’ job satisfaction and organizational commitment.

Are General Managers Well Prepared to Manage It? the Role of it in General MBA Programmes in Australia

1997 ◽  
Vol 12 (4) ◽  
pp. 261-276
Author(s):  
Chris Sauer ◽  
Rajeev Sharma ◽  
Barbara Potter
Keyword(s):  
Master Of Business Administration ◽  
Business Managers ◽  
Future Studies ◽  
General Management ◽  
General Managers ◽  
Expectation Gap ◽  
Core Courses ◽  
Mba Curriculum ◽  
Role Of It

This paper reports on the results from a survey of the provision of information technology (IT) course units in general MBA programmes in Australia. The results establish a baseline for future studies. They show widespread penetration of IT courses in general MBAs, but the amount and type of content they provide is only sufficient to give students a partial preparation for the general management task with respect to IT. There is an internal expectation gap between what IT academics view as core and the time and space available in the Master of Business Administration (MBA) curriculum. There is an external expectation gap between the issues currently of concern to business and the topics taught. At present the gap is widest in respect of business managers’ concerns about information infrastructure and organizational learning. The evidence suggests that neither expectation gap will decline over the next 5 years and may increase. We conclude that there is a need for increased provision in the curriculum. Recommendations are made for two core courses, with more attention to be given to topics of current concern to business managers.

Possible Selves Among Urban Youth

2016 ◽  
Vol 44 (6) ◽  
pp. 544-556 ◽  
Author(s):  
Justin C. Perry ◽  
Ryan Raeburn
Keyword(s):  
High School ◽  
Gender Differences ◽  
Social Class ◽  
Urban Youth ◽  
Possible Selves ◽  
Developmental Differences ◽  
Expectation Gap ◽  
And Gender ◽  
Subjective Social Class

The present study investigated developmental differences and stability in possible selves within the educational and occupational domain among a diverse sample of urban youth ( N = 319). A secondary aim was to test the “aspiration–expectation gap” while exploring the role of subjective social class and gender differences. Results did not indicate any significant differences among possible selves between different grades in high school. Seniors evidenced the lowest levels of subjective social class, whereas freshmen had the highest levels. Subjective social class was significantly associated with the expected levels of education. In addition, girls aspired toward significantly higher levels of prestige than boys in terms of occupations they hoped to attain, while a substantial gap was found between hoped-for and expected education. Implications for practice, limitations, and directions for research are discussed.

scholarly journals Stakeholders' Perception of Audit Performance Gap in Nigeria

2011 ◽  
Vol 1 (1) ◽  
pp. 29 ◽  
Author(s):  
Semiu Babatunde Adeyemi ◽  
Johnson Kolaawole Olowookere
Keyword(s):  
Negative Impact ◽  
Sampling Technique ◽  
Financial Statements ◽  
Control Measures ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Performance Gap ◽  
Expectation Gap ◽  
Audit Performance

AbstractThe 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.  The study examined the level and nature of expectation gap (performance gap) between auditors and users of financial statements.  It sought  to establish whether or not there are differences between users of financial statements and auditors’ perception of management responsibility for the preparation of financial statements, its reliability and decision usefulness.  Chi-square (c2) was used to analyze the data obtained from the study.  The data were obtained through questionnaire.  Two hundred and fifty (250) copies of the instrument  were distributed using purposive sampling technique.  In this study,  a cross-sectional survey was conducted to capture the perceptions of users of financial statements in Nigeria.  The tests of hypothesis were done using Statistical Package for Social Science (SPSS) version 14.0.  Tests were carried out at a  significant level of 5% and four degree of freedom.  The  findings of this study indicated that there is a wide expectation gap in the areas of auditors responsibility for fraud prevention and detection.  There is no generally accepted description of the role of the auditor.  Audit  scandals had negative impact on auditor’s credibility.  We recommend that users of financial statements should be enlightened more on the responsibilities of auditors on the financial statements, the role of the auditor should be clarified and quality control measures should be observed in audit firms.Key words: Auditing, Audit Performance gap, Users of Financial Statements, perceptions 

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