Education as a contribution to reduce the audit expectation gap: The Portuguese case

Enes, E.F.; Almeida, Bruno; Silva, Alexandre Gomes da; Carvalho, Fernando Paulo Marques de; Simões, Jorge

doi:10.1016/j.tekhne.2016.07.002

Cited by 12 publications

(12 citation statements)

References 17 publications

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“…Current enforced measures to narrow the expectation gap generally include the standardisation of the wording and structure of audit reports; the standardisation of audit opinions text; the addition of text stipulating the responsibilities of management and auditors in the audit report. Enes et al (2016) contend that the lack of information results in an enormous misunderstanding of the audit profession. Therefore, providing more information through the audit or the audit report is a necessary step towards reducing the public's misunderstanding of the audit (Enes et al, 2016;Ruhnke and Schmidt, 2014).…”

Section: Causes Of and Remedies For The Expectation Gapmentioning

confidence: 99%

An empirical investigation of the audit expectation gap: Evidence from Cameroon

Fotoh¹,

Lorentzon²,

Fossung³

2021

J. Account. Taxation

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Although the audit expectation gap has been subject to substantial research over the past two decades, it remains a controversial issue for the audit profession. This study, therefore, examines the existence of an audit expectation gap in Cameroon between auditors and users (accountants, bankers, and investors), assesses the dimensions of the gap, and relates the findings to prior findings on the expectation gap. A survey questionnaire capturing fifteen semantic different belief statements on a fivepoint Likert scale was filled by respondents (n=365). The questionnaire addressed issues concerning auditors' duties, and the consistency and usefulness of audits and audited statements of account. The results indicate significant evidence (α = 0.05) of an audit expectation gap concerning auditors' accountability to prevent as well as detect fraud and to maintain the soundness of internal control systems, and issues related to auditors' objectivity and impartiality. An expectation gap was equally observed regarding auditors' trustworthiness and whether audited statements of accounts obviously articulated the degree of guarantee and the work performed by auditors. We mainly recommend the establishment of an informative and educational platform aimed at keeping users abreast of auditors' responsibilities. These findings serve as a critical reference point for policymakers and regulators interested in enhancing audit quality and audit reliability in Cameroon and other developing economies exhibiting similar audit regulatory and socio-economic characteristics as Cameroon.

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Section: Causes Of and Remedies For The Expectation Gapmentioning

confidence: 99%

An empirical investigation of the audit expectation gap: Evidence from Cameroon

Fotoh¹,

Lorentzon²,

Fossung³

2021

J. Account. Taxation

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“…Audit Education includes the way toward illuminating, preparing and making mindfulness on the statutory obligations of the reviewer to clients of money related data and people, in general, all in all with the point of improving their degree of comprehension of the elements of a review procedure; and ensuing connecting of the hole between desires for the general population and execution of the inspector (Ihendinihu and Robert, 2014;Onyekachi et al, 2015). Past examinations (Fulop et al 2018;Fotoh, 2017;Kumara, Ajward and Dissabandara, 2017;Enes et al 2016;Adeyemi and Uadiale, 2011;Appah, 2010;Rehana, 2010;Javed, Taslima, and Aklema 2009;Pierce and Kilcommins, 1996) prove the adequacy of review instruction in abridging review desire hole by helping monetary data clients understand the role of auditors from the statutorily defined viewpoint. The audit education, as regards the functions of auditors in all assurance services, is a concept that should enlighten all stakeholders and the society at large.…”

Section: Audit Educationmentioning

confidence: 99%

“…The study further disclosed that advance auditing courses had better effects on minimizing the expectation gap. Enes et al (2016) evaluated the effect of audit courses taken by students on an audit expectation gap. The study was carried out in Portugal, and the purpose was to find out how audit courses affect the students' perception of the auditors' responsibilities, the duties and the audit work scope as statutorily specified.…”

Section: Studies Corroborating the Effectiveness Of Audit Education In Narrowing Expectation Gapmentioning

confidence: 99%

Audit Education as an Effective Tool for Narrowing Audit Expectation Gap: Evidence from Literature Review

Omodero

Okafor

2020

JESR

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This study investigates the determinants of audit expectation gap by reviewing several studies to establish its existence and the major causes of the expectation gap. In like manner, many other empirical works on the effectiveness of audit education in providing a solution to the anticipation breach issues are also examined. The findings reveal the existence of review expectancy crack in different countries of the world. The major causes of the breach also include performance deficiency, standard paucity, auditors’ compromise of their roles, and lack of public awareness of what the law specifies the auditors’ roles should be, among others. In the light of the review, this study further discovers that the varying audit prospect disruption can be effectively managed by providing adequate and comprehensive audit education to various users of audit reports and the society at large. In this study, we propose early learning of audit. An audit should be a general subject in the Universities and Institutions of higher learning. This will help to equip future managers, managing directors, entrepreneurs, chief executive officers (C.E.O.s) of companies, investors and other stakeholders.

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“…Research conducted in many developed and developing countries revealed the prevalence of audit reasonableness expectation gap regardless of the level of economic development, culture, and educational systems. For instances; in United States (Anderson, Maletta, & Wright, 1998;Frank, Jordan Lowe, & Smith, 2001;Jennings, Reckers, & Kneer, 1991), United Kingdom (Dewing & Russell, 2002;Christopher Humphrey, Moizer, & Turley, 1992;Christopher Humphrey, Moizer, & Turley, 1993;Manson & Zaman, 2001), Portugal (Enes, de Almeida, da Silva, Carvalho, & Simões, 2016), Australia (Monroe & Woodliff, 1993, 1994Schelluch & Gay, 2006), New Zealand (Porter et al, 2012), Singapore (Best, Buckby, & Tan, 2001; Chye Koh & Woo, 1998), China (Lin & Chen, 2004), Turkey (Köse & Erdogan, 2015), Malaysia (Azham, Ali, Teck Heang, Mohamad, & Ojo, 2008;Kasim & Hanafi, 2008;Md Ali, Lee, & Gloeck, 2009;Noghondari & Foong, 2013), Egypt (Dixon, Woodhead, & Sohliman, 2006), Nigeria (Adeyemi & Uadiale, 2011;Onulaka, 2014), Lebanon (Munir Sidani, 2007), Pakistan (Devi & Devi, 2014), and Bangladesh (Chowdhury, Innes, & Kouhy, 2005).…”

Section: Literature Reviewmentioning

confidence: 99%

Auditors’ responsibility for fraud detection: Views of auditors, preparers, and users of financial statements in Saudi Arabia

Al-Dhubaibi¹

2020

10.5267/j.ac

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The purpose of this study is to explore the views of independent external auditors, financial statements' preparers and financial statements' users regarding the general responsibilities of auditors with a focus on their responsibility for fraud detection. A structured questionnaire survey was used as an instrument to collect data for this purpose. A total of 1,015 questionnaires were sent to three categories of respondents whereas 261 valid responses were received with an overall response rate of 26%. The findings of this study revealed a substantial audit expectation gap in Saudi Arabia with regards to auditors' responsibilities in general and their responsibility for fraud detection in particular. Preparers of financial statements and users as well assume that auditors provide an absolute assurance that audited financial statements are free from material misstatements including fraud. In contrast to auditors' perception, preparers and users of financial statements believe that auditors should be made liable to audit beneficiaries for losses if failed to disclose potential fraud in the audit report or for any subsequent discovery of misstated audited financial statements. This study contributes to the audit profession in Saudi Arabia by highlighting the presence of a serious expectation gap that may adversely affect the value of audit function and the reputation of auditors in Saudi Arabia. The implications of these findings should motivate professional bodies and other interested parties to cooperate and work closely to reduce the gap and find a convergence between auditors and audit beneficiaries about the role and responsibilities of auditors.

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Education as a contribution to reduce the audit expectation gap: The Portuguese case

Cited by 12 publications

References 17 publications

An empirical investigation of the audit expectation gap: Evidence from Cameroon

An empirical investigation of the audit expectation gap: Evidence from Cameroon

Audit Education as an Effective Tool for Narrowing Audit Expectation Gap: Evidence from Literature Review

Auditors’ responsibility for fraud detection: Views of auditors, preparers, and users of financial statements in Saudi Arabia

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