Audit Expectation Gap In Accounting

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Audit expectation gap is referred to as the gap between the role of an auditor in the perceptions of auditor and the users of financial statements. It reflects the gap between the auditor’s actions and the expectations of society from auditor to create the impression that statutory objective of audit is not fulfilling the social needs of people. The functions being performed by the profession of accounting are found to be important in the growth and stability of financial market both at the domestic level and international level (Ruhnke & Schmidt, 2014). An audit can be defined as the examination of financial statements of an organisation by the independent professional (an auditor) considering the attestation of financial report reflecting…show more content…
It can be said that the credibility of the accounting profession has appeared to be at the lowest outgoing tide. In the UK, this profession has lost its self-regulatory status. In this situation, the profession is found to be bestirring and the results are the muddle of initiatives and suggestions with the aim of solving the issue of expectation gap. Some of the suggestions and initiatives appear to be mundane while some are found to be controversial (Adeyemi & Uadiale, 2011). One research study concluded that expectation gap issue cannot be eradicated. It is believed that the profession of accountancy has resisted change in the process of auditing for a long time that it was not likely to change the initiatives. Considering all these aspects, the perceptions of members of ICAEW in the UK related to the suggestion and initiatives for addressing the problem of expectation gap are to be explored (Ruhnke & Schmidt,…show more content…
• What are the opinions of ICAEW members in the UK related to the suggestions that convocation of stakeholder’s dialogue for negotiating the issues involved has become eager? • Why the members of ICAEW in the UK are worried about further delays by the accounting profession in the UK to seek solution to the issue of audit expectation gap that can lead to the interference of government legislations? • How ICAEW members are willing to enlist the cooperation of competing professionals in the UK to confront the audit expectation issue? 1.5. Significance of the

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