Definition

Expectation gap and/or Expectation Gap in connection with the annual audit marks the discrepancy between expectations of the end-of-year procedure addressees and the actual legal order and contents of the annual audit. The more strongly expectations of the public of the actual task of the final examination deviate, the less the work of the accountants (chartered accoutants) reliable are considered.

Causes of the expectation gap

An expectation gap can result on the one hand from unsatisfactory execution of the annual audit as well as from insufficient laws; on the other hand by excessive expectations of the public.

Solutions

In principle there are two different starting points. On the one hand expectations of the public can be tried on an appropriate measure to limit. On the other hand expectations of the public can, by which improvement of the achievement contribution of the chartered accoutants, are better too fulfilled. This can happened through:

• Delimitation of expectations of the public by better communication between the public and the profession of the chartered accoutants
• Disclosure of the examination reports in the case of insolvency
• Peer Review (quality control of the accountants)
• Expansion of the extent of the testing (final examination as "“management examination"”)
• Safety device of the independence of the accountant
• Mechanism of an Enforcement instance
• Improved supervision of occupation
• Personal responsibility
• Separation from examination and consultation

Literature

Articles in category "Expectation gap during the annual audit"

We found here 45 articles.

Related Websites

We found here 6 related websites.

• Comment Letter
  prepared an annual audit plan for 2004 with about the same number of hours ... Internal Audit's need and expectation during the gap analysis phase sometimes ...


• DCUBS Research Paper Series: No. 13: The Audit Expectations Gap ...
  The phrase "Audit Expectations Gap" was first introduced into the ... should be included in the annual report, and furthermore that audit committees should ...


• Kenora Daily Miner and News, Kenora, ON
  City to seek organizational review of district services board, Date: 2006-04-03 ... Twenty jobs lost in communications centralization, Date: 2005-08-11 ...


• National Association of State Retirement Administrators
  Audit projects are identified during the annual risk assessment. Furthermore the ... expectation gap with the audit committee and senior management. ...


• Why Didn
  discovered during an audit than are. fraud. Fraud schemes are crafted to ... expectation gap between the auditors. and the clients Regardless of ...


• WLJ - Fraud Prevention 101
  Errors are much more likely to be discovered during an audit than are fraud. ... Auditors also bear some responsibility for the expectation gap, ...