AUDIT EXPECTATION GAP The phrase "Audit Expectations Gap" was first introduced into the literature over thirty five years ago‚ by Liggio (1974)‚ under the Cohen Commission. It was defined as the difference between the levels of expected performance "as envisioned by the independent accountant and by the user of financial statements" The term ‘expectation gap’ is commonly utilized to describe the situation whereby a difference in expectation exists between a group with a certain expertise‚ and
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AUDIT EXPECTATIONS GAP Definition i) Liggio (1974a) defines it as the difference between the levels of expected performance as envisioned by the independent accountant and by the user of financial statements. The Cohen Commission (1978) on auditors’ responsibility extended this definition by considering whether a gap may exist between what the public expects or needs and what auditors can and should reasonably expect to accomplish. ii) According to Guy and Sullivan (1988)‚ there is a
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failures of financial services firms‚ the issues about ‘audit expectation gap’ have never been more important. Though it would take an enormous amount of effort to address these issues‚ I will argue that tremendous amounts could be done in order to close the gap down. In this essay I will discuss some of these issues and in particular the strategies to reduce the gap. Definitions Various definitions have been proposed for the audit expectation gap. Humphrey‚ Moizer and Turley (1992)‚ suggest that
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The Existence of Audit Expectation Gap: Bangladesh Perspective - Perceptions of Naïve Investors‚ Students and Professionals Regarding the Audit and Role of Knowledge Affecting the Gap. Abstract: The study investigates the existence of audit expectation gap in relation to society’s unreasonable expectations out of auditing in Bangladesh. This also identified the effects of auditing knowledge on the gap. Among all the classes of our society the accounting graduates are expected to have more
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AUDITING EXPECTATION GAP: NIGERIAN PERSPECTIVE 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
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Identify and discuss the significance and relevance of minimizing Quality Gaps in developing a positive Service Culture and meeting and exceeding Customer expectations of Good service. Many customers‚ independent of industry‚ have expectations of the service they want to receive. The rank of their expectations depends on earlier encounters and experience. Providing good service to your customers is essential to a successful business future. Companies within different industries‚ particularly
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Expectation Gap and Corporate Fraud: Is Public Opinion Reconcilable with Auditors’ Duties? Jeffrey Cohena‚ Yuan Dingb‚ Cédric Lesagec‚* and Hervé Stolowyc b Carroll School of Management at Boston College‚ USA China-Europe International Business School (CEIBS)‚ Shanghai‚ China c HEC Paris‚ France a This draft – October 28‚ 2010 – Please do not cite or circulate without permission – Comments welcome Acknowledgments. Cédric Lesage and Hervé Stolowy acknowledge the financial support of the
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Strategies for Minimising Disruption Through Inappropriate Behaviour Different behaviours require different levels of intervention‚ it is more effective to manage inappropriate behaviour when it is first noticed or at its lowest level and the type of intervention used should be determined by the intensity‚ frequency and duration of the behaviour displayed. It is important not to try to befriend students or gain their approval as this will make behaviour management very difficult as they will think
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Strategic Audit of The Gap‚ Inc. Submitted by: Chris Bess‚ Teddy Ormsbee‚ Tiffany Sayers‚ and Jeremey Williams Submitted to: Professor Ditmore 13 April 2010 Table of Contents I. Current Situation: The Gap in 2002 3 A. Past Corporate Performance 3 B. Strategic Posture 4 II. Corporate Governance 5 A. Board of Directors 6 B. Top Management 7 III. External Environment: Opportunities and Threats 8 A.) Societal Environment 8 B.) Task Environment 10 IV. Internal
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Gap analysis generally refers to the activity of studying the differences between standards and the delivery of those standards. What role does gap analysis play in the audit process and how is it relevant for successful outcomes in terms of organisational goals. In more specific terms‚ gap analysis can be defined as the technique for determining the steps to be taken in moving from a current state to a desired future-state. This as the name implies is simply the description of the ‘gap’ between
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