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Hello, I am looking for someone to write an article on Audit Expectation Gap in Auditor Responsibilities. It needs to be at least 2000 words.
Hello, I am looking for someone to write an article on Audit Expectation Gap in Auditor Responsibilities. It needs to be at least 2000 words. The public also perceives the independence of auditors and expect higher audit quality and performance. The perceived independence of auditors in the mind of public and actual independence given to the auditors can directly influence the expectation gap. Unreasonable expectations of the public may also influence the expectation gap by widening it. Educating users of financial statements about auditor’s role is important through annual shareholders’ meetings and other such events (Ojo). Through interviews from various firms, Oje found that conflict between auditors’ dual role and reporting accountants can also influence the expectation gap. The higher the conflict the more is the expectation therefore, a great focus is being by companies towards defining clear roles of auditors and accountants. The image of the company and auditors can also influence the expectations of users of financial statements and the better the image, the more are the expectations.
The higher expectations of users also influence the gap (Mahadevaswamy and Salehi). The increasing auditor’s role has and changing professional standards have also influenced public opinion and their expectations have increased. On the other hand, an auditor’s lack of interest in the expectations of shareholders and other users of financial statements can also appear as a determinant of the expectations gap (Epstein And Geiger). Therefore, the perceived independence of the auditors, unreasonable expectations of users, higher expectations of users because of good of company or auditors, conflict between auditor’s role and accountants’ role, increasing auditors’ role and changing professional standards and lack of interest of auditor in understanding the expectations of users are the major factors affecting expectation gap.
A significant number of publically owned companies and the increasing awareness of the public have largely influenced .the developments in auditors’ responsibilities. .
