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 640
- Downloads 46
EXTERNAL AND INTERNAL OWNERSHIP CONCENTRATION AND DEBT DECISIONS IN AN EMERGING MARKET: EVIDENCE FROM PAKISTAN
This study examines the effect of concentration of ownership both external block ownership and managerial share ownership on capital structure decision of Pakistani non-financial firms. The panel data is used to investig...
The Corruption and the Quality of Auditing Standards
The paper uses cross country regression analysis on a data set consisting of one hundred thirty countries for the year 2008 to test whether better auditing standards lead to lower levels of corruption. The results are co...
DETERMINANTS OF CHILDREN’S HEALTH FOR HUMAN CAPITAL ACCUMULATION: EMPIRICAL ANALYSIS
In this paper we study the determinants of children health resources for human capital accumulation on a sample of children living in Cameroon. Data are from Demographic and Health Survey (DHS-III). We find that using or...
GENDER DISPARITY IN FUNCTIONALITY AND CONSEQUENCE OF MICROFINANCE: DOES IT FUNCTION CURRENTLY?
This study has been designed to represent gender disparity in different issues like adequacy of loan amount, rate of interest, formalities to take loan and consequence of microfinance in poverty alleviation. Both descrip...
ASIA PACIFIC ADRS IN THE NEW MILLENNIUM: IS THERE A DIFFERENCE IN PERFORMANCE FOR ISSUES LISTED ON THE NYSE IN THE LAST TWO DECADES?
The long-term excess returns for Asia Pacific ADRs listed on the NYSE from 1990 through 2009 are tested to determine differences in performance and evidence of decade-long market timing effects. While the overall sample...