Audit Expectation Gap in Accounting Further Relections with a Comparative Analysis of UK, Singapore & China

DOI: 10.5176/2251-1997_AF17.54

Authors: Sajid Bashir

Abstract:

The advent of global corporate collapses has brought scholarly attention to the issues of audit expectations gap (AEG) and the actual role of the auditor. Prem Sikka’s critique of the lack of efficient performance evaluation systems for auditors points out the extent of the damage misleading audit reports could cause in financial markets. With this in mind, this study aims to assess ways and means for the maximisation of fraud detection by using the different characteristics of the audit reports and their users. By using a constructivist approach which enables the researcher to adopt practical problem solving initiatives, this assessment involves a diversity of cultural assessments within AEG in diverse cultural contexts namely UK, Singapore and China. The literature review part of the study covers a broad spectrum of literature on AEG from studies that have attempted to identify whether an expectation gap exists and what the contributing factors are (see Porter 1993, Fazdly and Ahmad 2004, Dixon et al 2006), to the ones that have facilitated learning into auditor independence (see Sweeney 1997, Lin and Chen 2004, Alleyne et al. 2006).

Keywords: Audit Expectation Gap, Role of the Auditors, Culture, Porters Model, Legislation, Contribution