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How to Bridge the Audit Expectation Gap?

Author

Listed:
  • Hassan Mansur

    (Szent Istvan University, Doctoral school of Management and Business Administration Sciences, Pater Karolyutca, Hungary)

  • Anita Tangl, Dr. Prof.

    (Szent Istvan University, Faculty of Economics and Social Sciences, Godollo, Hungary)

Abstract

Purpose: This paper aimed to highlight the possibilities to bridge the audit expectation gap between external auditors and stakeholders. Design/Type of Research: This paper is a review study based on the analysis of previous studies, reports and publications that are related to audit expectation gap, external audit profession and public perceptions towards the external auditors. Limitations/Implications: The paper focused on audit expectation gap in the field of accounting and auditing. Conclusion Conclusions are summarized as the following: The audit expectation gap can be bridged through much more experiences, training, effort for auditors, and much more educating for financial statements’ users about the role and nature of audit profession. Audit expectation gap could be bridged between external auditors and stakeholders, but couldn’t be eliminated completely. Better communication between the auditors and the society may help reduce the gap. Recommendations There are some recommendations that could narrow the audit gap such as increase the awareness of public about the auditors’ responsibilities and duties, and increase the practitioners’ (external auditors) skills and abilities through education and training; increase the quality of audit standards.

Suggested Citation

  • Hassan Mansur & Anita Tangl, Dr. Prof., 2018. "How to Bridge the Audit Expectation Gap?," Journal of Social Sciences (COES&RJ-JSS), , vol. 7(2), pages 61-73, April.
    • Handle: RePEc:jso:coejss:v:7:y:2018:i:2:p:61-73
    DOI: 10.25255/10.25255/jss.2018.7.2.61.73
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    References listed on IDEAS

    as
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    4. Paul M. Healy & Krishna G. Palepu, 2003. "The Fall of Enron," Journal of Economic Perspectives, American Economic Association, vol. 17(2), pages 3-26, Spring.
    5. Kristy Hodge & Nava Subramaniam & Jenny Stewart, 2009. "Assurance of Sustainability Reports: Impact on Report Users' Confidence and Perceptions of Information Credibility," Australian Accounting Review, CPA Australia, vol. 19(3), pages 178-194, September.
    6. Ojo, Marianne, 2006. "Eliminating the Audit Expectations Gap : Myth or Reality?," MPRA Paper 232, University Library of Munich, Germany, revised Sep 2006.
    Full references (including those not matched with items on IDEAS)

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