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Audit Expectation Gap – Evidence in 21st Century

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  • Mohammed Moin Uddin Reza
  • Md. Rezaul Karim

Abstract

Audit expectation gap has always been a captivating literature to study in the accounting and auditing philosophy. The first study on audit expectation gap was carried in 1974 and since then several literatures have been developing to identify the evidence of audit expectation gap in different responsibility centers of auditors proposing how to reduce the gap from different perspectives. As the scope of auditing is kind of defined by definitions, we tend to believe that the expectation gap must be reducing with the adoption of audit knowledge and practices over times which must be working from both the auditors’ and users of financial statements’ end. This paper aims to find out the evidence of audit expectation gap in the literatures concentrating majorly on the 21st century and summarizing the proposals made to reduce the existing expectation gap. Certain research gaps have been traced through the study of literatures which will create further avenues for the researchers of audit expectation gap to work on.

Suggested Citation

  • Mohammed Moin Uddin Reza & Md. Rezaul Karim, 2018. "Audit Expectation Gap – Evidence in 21st Century," International Journal of Science and Business, IJSAB International, vol. 2(4), pages 748-756.
    • Handle: RePEc:aif:journl:v:2:y:2018:i:4:p:748-756
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    References listed on IDEAS

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    2. Anderson, John C. & Lowe, D. Jordan & Reckers, Philip M. J., 1993. "Evaluation of auditor decisions: Hindsight bias effects and the expectation gap," Journal of Economic Psychology, Elsevier, vol. 14(4), pages 711-737, December.
    3. Javed Siddiqui & Taslima Nasreen & Aklema Choudhury-Lema, 2009. "The audit expectations gap and the role of audit education: the case of an emerging economy," Managerial Auditing Journal, Emerald Group Publishing, vol. 24(6), pages 564-583, June.
    4. Philip Law, 2008. "An empirical comparison of non-Big 4 and Big 4 auditors' perceptions of auditor independence," Managerial Auditing Journal, Emerald Group Publishing, vol. 23(9), pages 917-934, October.
    5. Rehana, Fowzia, 2010. "An Empirical Study on Audit Expectation Gap: Role of Auditing Education in Bangladesh," MPRA Paper 22708, University Library of Munich, Germany.
    6. Amirhossein Taebi Noghondari & Soon-Yau Foong, 2013. "Antecedents and consequences of audit expectation gap: Evidence from the banking sector in Malaysia," Managerial Auditing Journal, Emerald Group Publishing, vol. 28(5), pages 384-406, May.
    7. Philip Law, 2008. "Auditors' perceptions of reasonable assurance in audit work and the effectiveness of the audit risk model," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 16(2), pages 160-178, July.
    8. Peter Schelluch & Wendy Green, 1996. "The Expectation Gap: the Next Step," Australian Accounting Review, CPA Australia, vol. 6(12), pages 19-23, September.
    9. Yusuf Munir Sidani, 2007. "The audit expectation gap: evidence from Lebanon," Managerial Auditing Journal, Emerald Group Publishing, vol. 22(3), pages 288-302, March.
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