Audit Expectations Gap

INTRODUCTION Following the collapse of Enron and the failure of a series of attention by financial services companies, the "audit anticipation gap" problem is no longer more important in the current crisis of trust in the public accounting industry. A lot of effort is needed to solve these problems, but I think we can make a big effort to fill the gap. In this article I will discuss some of these issues, especially strategies to fill the gap.

Mohamed and Muhamad Sori (2002) conducted an investigation into the gap of audit expectations in Malaysia. They revealed that there is an audit anticipation gap in Malaysia. The existence of gaps is brought about by a number of factors such as, for example, uncertainty about the auditor's actual role, customer satisfaction with the services provided by the auditor, lack of audit company independence and objectivity I will. However, this survey does not include differences in perception between users and auditors related to the implications of the audit report. In addition, issues such as the truthful and fair view of the financial statements and the company's continued work recognition between the user and the auditor are not identified.

Audit experts believe that the increase in auditor 's litigation and criticism is due to the gap in audit expectations. The gap of the expected value of the audit is not suitable for the auditing industry as it adversely affects the value of the audit and the reputation of modern social auditors. The existence of the audit expectation gap is due to the complexity of the audit function, the role of the auditor, the retrospective evaluation of the performance of the auditor, the time lag of response to changing expectations, and the self-regulatory process of the audit specialist found. Given these problem factors leading to anticipated gaps, neither auditors nor users should be charged with the "audit anticipation gap" crisis.

To complement the findings of Fadzly and Admad (2004), Lee and Palaniappan (2006) subsequently conducted a survey of Malaysia's audit expectation gap to determine whether there is an expected gap between the Malaysian auditor and the audit beneficiary I checked it. . Auditor duties In addition, this study used Porter's framework to analyze the nature of the gap. As a result, in Malaysia it has been proved that there is a gap in audit expectations. According to the survey, the auditor and the audit beneficiary have high expectations of the auditor's responsibility rather than the auditor considering their own responsibilities. An analysis of anticipated gaps shows that some users have unfair expectations; Malaysian auditing standards are not perfect; auditor performance is bad