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Development of approaches to definition, classification and evaluation of "expectations gap" in the broader context of engagements provided by certified auditors

Author

Listed:
  • Nataliia SHALIMOVA

    (Central Ukrainian National Technical University, Kropyvnytskyi, Ukraine)

  • Iryna ANDROSHCHUK

    (Central Ukrainian National Technical University, Kropyvnytskyi, Ukraine)

Abstract

The conceptual definition of "expectations gap" considering all engagements governed by the International Standards is hereby proposed. There is elaborated the chain of study of the level of users’ satisfaction with the engagements provided by certified auditors. There is considered the algorithm for the consideration of the information needs of the users of the results of the auditor’s work while performing different types of engagements, classification and characteristics of information needs. There are analyzed the expectations of the users of engagements provided by certified auditors. There are grounded the characteristics of the different levels of service («desired» and «minimum» services, and the «zone of tolerance») while performing engagements provided by certified auditors. There are substantiated the five levels of the gap (in formation of expectations of users, in knowledge, in standards, in service and communications), the causes of their occurrence and ways of overcoming them. A distinctive feature of the proposed model is the selection of two components of the “gap in the formation of expectations” and “gap in communication”: level of society and level of interaction of auditors with intended users, responsible party and management. The research findings will serve as the basis for determining the directions of development of the engagements provided by certified auditors (audit, review, other assurance engagements, related services) and improving its quality.

Suggested Citation

  • Nataliia SHALIMOVA & Iryna ANDROSHCHUK, 2018. "Development of approaches to definition, classification and evaluation of "expectations gap" in the broader context of engagements provided by certified auditors," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 16(152), pages 553-553.
    • Handle: RePEc:aud:audfin:v:16:y:2018:i:152:p:553
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    References listed on IDEAS

    as
    1. Wendy Green & Qixin Li, 2011. "Evidence of an expectation gap for greenhouse gas emissions assurance," Accounting, Auditing & Accountability Journal, Emerald Group Publishing, vol. 25(1), pages 146-173, December.
    2. Mahdi Salehi, 2016. "Quantifying Audit Expectation Gap: A New approach to Measuring Expectation Gap," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 19(1), pages 25-44, May.
    3. Javed Siddiqui & Taslima Nasreen & Aklema Choudhury-Lema, 2009. "The audit expectations gap and the role of audit education: the case of an emerging economy," Managerial Auditing Journal, Emerald Group Publishing, vol. 24(6), pages 564-583, June.
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    More about this item

    Keywords

    assurance engagements; expectations gap; user information needs; user expectations;
    All these keywords.

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies

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