Various studies have confirmed the existence of the audit expectation gap. Most research studies indicate that the audit expectation gap is mainly due to users' unreasonable expectations of audits as well as their unrealistic perceptions of the audit profession's performance

Required:

You are required to prepare an essay on the audit expectation gap. Your essay should include a review of the literature in the following area:

1. “Theoretically explanation” why an audit expectation gap could exist between auditors and users of financial statements.
2. An in-depth discussion on what are the contributing factors of an audit expectation gap
3. Comment whether such a gap can be totally eliminated.

It should be around 2,500 – 3,000 words and you need to cite at least 20 academic articles. Empirical evidence should be emphasized to support your writing.

Answer rating: 100% (QA)

The audit expectation gap is the difference between what users of financial statements expect from an audit and what aud itors actually do during an audit There are several reasons why this gap exists ... View the full answer