EXISTENCE AND NATURE OF AUDIT EXPECTATION GAP: NIGERIAN PERSPECTIVE
Journal Title: Asian Economic and Financial Review - Year 2012, Vol 2, Issue 8
Abstract
The audit expectation gap is critical to the auditing profession because the greater the unfulfilled expectation from the public, the lower the credibility earning potential and prestige associated with the work of auditors. The study examined the level and nature of expectation gap (performance gap) between auditors and users of financial statements. It sought to establish whether audit expectation gap exists in Nigeria and the perception of the users’ group on its existence. Respondents view was also sought on how the gap could be narrowed. Chi-square (χ2) was used to analyze the data obtained from the study. The data were obtained through questionnaire. One hundred and sixty (160) copies of the instrument were distributed using purposive sampling technique. In this study, a cross-sectional survey was conducted to capture the perceptions of users of financial statements in Nigeria. The tests of hypothesis were done using Microsoft Excel 2010 version. Tests were carried out at a significant level of 5% and three degree of freedom. The findings of the study indicated that there is a wide expectation gap in the areas of auditors’ responsibility for fraud prevention and detection. Audit expectation gap has negative impact on auditor’s credibility. The users of financial statements should be enlightened more on the responsibilities of auditors on the financial statements, the role of the auditor should be clarified and quality control measures should be observed in audit firms.
Authors and Affiliations
Oseni, Abubakar Idris| Department of Accountancy Auchi Polytechnic, Auchi, Edo State, Nigeria., Ehimi, Celestina Ojemen| Department of Accountancy Auchi Polytechnic, Auchi, Edo State, Nigeria.
Keywords
Related Articles
- EP ID EP1854
- DOI -
- Views 546
- Downloads 46
Driving Forces of Globalization in Emerging Market Economies Developing Countries
The paper will deal mainly with the macroeconomics of globalization (trade andfinance), but before proceeding, a final distinction needs to be drawn betweenglobalization and liberalization. Developing countries themselve...
EXPLORING THE RETURNS AND VOLATILITY SPILLOVER EFFECT IN TAIWAN AND JAPAN STOCK MARKETS
This study examined the returns on the Taiwan Capitalization Weighted Stock Index (TAIEX) and NIKKEI Stock Average Index (NIKKEI) and explored the volatility spillover effect between the Taiwanese and Japanese stock mark...
CAUSALITY ANALYSIS OF VOLATILITY IN EXCHANGE RATE AND STOCK MARKET PRICES: A CASE STUDY OF PAKISTAN
This study attempted to investigate the direction of causation between the volatilities of exchange rate and stock market prices in Pakistan. Monthly time series data of Karachi Stock Exchange prices (KSE-100 Index) and...
TRANSACTION COSTS, MULTIPLE EQUILIBRIA, AND CURRENCY DEVALUATION
This paper attempts to examine the effect of a currency devaluation on domestic output by incorporating the Coase (1937) assertion into a standard open economy model. Our results show that there will be multiple equilibr...
THE DETERMINANTS OF PROFIT FORECAST BY TUNISIAN COMPANIES
This paper aims to examine the impact of the determinants of profit forecast by companies on the level of detail of information published by the leaders. It analyzes the contribution of publications to reduce information...