Reviewing the Audit Expection Gap Literature from 1974 to 2007.
Keywords:
audit expectation gap, audit, financial statementsAbstract
In auditing literature, the issue of audit expectation gap is still a concern in that auditors and the public grasp different beliefs about the auditors’ duties and responsibilities and what messages they communicate in the audit reports. Recently, the audit expectation gap has been highlighted as a hot spot in the auditing researches because of the collapse of some spectacular and well- publicized corporations such as Enron. Thus, the aim of this paper is to review the literature on the audit expectation gap which is divided into the following sections: definition of the audit expectation gap; nature, structure, and elements of the audit expectation gap; a brief history about the audit expectation gap; evidence on the expectation gap from all over the world; and mechanisms used to narrow and eliminate the audit expectation gap. It is hoped that this paper can provide insights into the audit expectation gap.
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