IDEAS home Printed from https://ideas.repec.org/a/ahd/journl/v5y2024i7p62-73.html

Effectiveness of Auditor’s Report as a Medium of Communication to Reduce the Level of the Audit Expectation Gap of Amon Chartered Accountants

Author

Listed:
  • Newman WADESANGO

    (University of Limpopo, South Africa)

  • Nasoma DAVID

    (Midlands State University, Zimbabwe)

  • Lovemore SITSHA

    (Midlands State University, Zimbabwe)

Abstract

The audit expectation gap is a widely researched phenomenon in the accounting world. This study sought to evaluate the effectiveness of the audit report as a medium of communication and as a tool to reduce the audit expectation gap. It also focused on exploring the roles and responsibilities of auditors and the entity’s management and directors from the views of auditors and users of financial information. A quantitative research approach was adopted, and the target population was the ACAZ staff and staff of its three clients and a census was used, since the targeted population was limited. The research instruments that were used were questionnaires. The results were presented in tables and graphs and analyzed using mode and regression analysis. The study established that the audit report is effective in reducing the audit expectation gap, because it provides with the duties and responsibilities of both auditors and the entity’s management and directors, but only if the users pay attention to all information the report contains, and also that the language and meaning of the audit report is not that easy to understand to users of financial statements, that it can lead to another expectation gap, so the users are to be educated and interpreted on the meaning of other paragraphs provided in the audit report.

Suggested Citation

  • Newman WADESANGO & Nasoma DAVID & Lovemore SITSHA, 2024. "Effectiveness of Auditor’s Report as a Medium of Communication to Reduce the Level of the Audit Expectation Gap of Amon Chartered Accountants," CECCAR Business Review, Body of Expert and Licensed Accountants of Romania (CECCAR), vol. 5(7), pages 62-73, July.
    • Handle: RePEc:ahd:journl:v:5:y:2024:i:7:p:62-73
    DOI: 10.37945/cbr.2024.07.07
    as

    Download full text from publisher

    File URL: https://www.ceccarbusinessreview.ro/effectiveness-of-auditors-report-as-a-medium-of-communication-to-reduce-the-level-of-the-audit-expectation-gap-of-amon-chartered-accountants-a408d/download-PDF/
    Download Restriction: no
    File URL: https://www.ceccarbusinessreview.ro/effectiveness-of-auditors-report-as-a-medium-of-communication-to-reduce-the-level-of-the-audit-expectation-gap-of-amon-chartered-accountants-a408a/abstract/
    Download Restriction: no
    File URL: https://libkey.io/10.37945/cbr.2024.07.07?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Quick, Reiner, 2020. "The Audit Expectation Gap: A Review of the Academic Literature," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 124768, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    2. Idris, Oseni Abubakar & Ojemen, Ehimi Celestina, 2012. "Existence and Nature of Audit Expectation Gap: Nigerian Perspective," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 2(8), pages 1051-1063.
    3. Tarek Abdelfattah & Mohamed Elmahgoub & Ahmed A. Elamer, 2021. "Female Audit Partners and Extended Audit Reporting: UK Evidence," Journal of Business Ethics, Springer, vol. 174(1), pages 177-197, November.
    4. Samuel A. Olaoye & Theophilus A.Aguguom & Sodiq E. Safiriyu & Tobi Abiola, 2019. "Independence of Statutory Auditor and Reliability of Financial Statements: Evidence from Listed Manufacturing Companies in Nigerian," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 9(8), pages 436-449, August.
    5. Mahmoud Elmarzouky & Khaled Hussainey & Tarek Abdelfattah & Atm Enayet Karim, 2022. "Corporate risk disclosure and key audit matters: the egocentric theory," International Journal of Accounting & Information Management, Emerald Group Publishing Limited, vol. 30(2), pages 230-251, March.
    6. Hian Chye Koh & E‐Sah Woo, 1998. "The expectation gap in auditing," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 13(3), pages 147-154, April.
    7. Nguyen Ngoc Khanh Dung & Dang Anh Tuan, 2019. "The Study of Audit Expectation Gap: The Auditor?s Responsibilities in a Financial Statement Audit in Vietnam," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(11), pages 1227-1254, November.
    8. Agus Joko Pramono & Riefqi Hanief, 2022. "An Investigation of Audit Expectation Gap in Indonesia’s Public Sector," Jurnal Tata Kelola dan Akuntabilitas Keuangan Negara, Badan Pemeriksa Keuangan Republik Indonesia, vol. 8(1), pages 1-21.
    9. Dung, Nguyen Ngoc Khanh & Tuan, Dang Anh, 2019. "The Study of Audit Expectation Gap: The Auditor’s Responsibilities in a Financial Statement Audit in Vietnam," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(11), pages 1227-1254.
    10. Olaoye, Samuel A & Aguguom, Theophilus A & Safiriyu, Sodiq E & Abiola, Tobi, 2019. "Independence of Statutory Auditor and Reliability of Financial Statements: Evidence from Listed Manufacturing Companies in Nigerian," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 9(8), pages 436-449.
    11. Charles Guandaru Kamau, 2022. "Considerations for bridging the Audit Expectation Gap: A Desk Review," African Journal of Commercial Studies, African Journal of Commercial Studies, vol. 1(1).
    12. Elizabeth Gutierrez & Miguel Minutti-Meza & Kay W. Tatum & Maria Vulcheva, 2018. "Consequences of adopting an expanded auditor’s report in the United Kingdom," Review of Accounting Studies, Springer, vol. 23(4), pages 1543-1587, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Duboisée de Ricquebourg, Alan & Maroun, Warren, 2023. "How do auditor rotations affect key audit matters? Archival evidence from South African audits," The British Accounting Review, Elsevier, vol. 55(2).
    2. Tarmizi Achmad & Imam Ghozali & Imang Dapit Pamungkas, 2022. "Hexagon Fraud: Detection of Fraudulent Financial Reporting in State-Owned Enterprises Indonesia," Economies, MDPI, vol. 10(1), pages 1-16, January.
    3. Luo, Xiang & Luo, Yi & Zhou, Jianan, 2025. "The communicative value of key audit matters in M&As: The effect of performance commitments," Journal of Contemporary Accounting and Economics, Elsevier, vol. 21(2).
    4. Ahmed Aboud & Hany Elbardan & Moataz El-Helaly & Amr Kotb, 2024. "Does the audit committee member’s accounting experience associated with key audit matter types?," Review of Quantitative Finance and Accounting, Springer, vol. 63(2), pages 753-780, August.
    5. Alain BURLAUD & Maria NICULESCU, 2024. "Expectation Gap: the Story of the Auditor's Necessary and Impossible Mission," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 22(176), pages 695-723, October.
    6. Pinto, Inês & Morais, Ana Isabel & Quick, Reiner, 2020. "The impact of the precision of accounting standards on the expanded auditor’s report in the European Union," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 40(C).
    7. Tantawy Moussa & Natalia Krasnikova & Maria Postoyeva & Amira Hawas & Akrum Helfaya, 2026. "Sustainability Performance, Cost of Debt, and Institutional Environment Quality: Global Evidence From the Hospitality and Tourism Industry," Business Strategy and the Environment, Wiley Blackwell, vol. 35(2), pages 1712-1734, February.
    8. Salman Arif & John D. Kepler & Joseph Schroeder & Daniel Taylor, 2022. "Audit process, private information, and insider trading," Review of Accounting Studies, Springer, vol. 27(3), pages 1125-1156, September.
    9. Duan, Mingli, 2025. "The signaling effect of tone: The influence of key audit matters’ tone on bank lending decisions," Finance Research Letters, Elsevier, vol. 76(C).
    10. Md. Mustafizur Rahaman & Md. Borhan Uddin Bhuiyan, 2025. "Audit report lag and key audit matters in Australia," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 22(2), pages 532-554, June.
    11. Wang, Qi & Zhang, Lin & Ma, Qianqun & Wu, Chong, 2024. "The impact of financial risk on boilerplate of key audit matters: Evidence from China," Research in International Business and Finance, Elsevier, vol. 70(PB).
    12. Khaldoon Albitar & Mahmoud Elmarzouky & ATM Enayet Karim & Ali Meftah Gerged, 2025. "COVID‐19, Board of Directors and Pessimism in Annual Reports: An Intention to Mitigate Litigation Risk," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 30(3), pages 3187-3200, July.
    13. Sabine Graschitz & Marcel Steller, 2025. "Audit fees and audit quality in Austria—a replicatory study in the wake of the EU audit reform," Journal of Business Economics, Springer, vol. 95(2), pages 295-332, April.
    14. Ma, Jin & Coram, Paul & Troshani, Indrit, 2024. "The effect of key audit matters and management disclosures on auditors’ judgements and decisions: An exploratory study," The British Accounting Review, Elsevier, vol. 56(2).
    15. Der-Jang Chi & Chien-Chou Chu, 2021. "Artificial Intelligence in Corporate Sustainability: Using LSTM and GRU for Going Concern Prediction," Sustainability, MDPI, vol. 13(21), pages 1-18, October.
    16. Jun Wang & Chongfeng Wu, 2024. "Removing barriers: How online visits boost female analysts' participation," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 64(4), pages 4039-4067, December.
    17. Rezaee, Zabihollah & Homayoun, Saeid, 2025. "Reprint of: Key audit matters disclosures and informed traders," The British Accounting Review, Elsevier, vol. 57(1).
    18. Daniel P. Lynch & Aaron Mandell & Linette M. Rousseau, 2025. "The consequences of expanded audit reporting: implications of tax key audit matters for tax attribute valuation and auditor-provided tax services," Review of Accounting Studies, Springer, vol. 30(4), pages 3894-3953, December.
    19. Jessica A. Nylen & Daniel D. Wangerin & Karla M. Zehms, 2025. "Do key audit matter disclosures about M&A transactions predict future performance?," Review of Accounting Studies, Springer, vol. 30(3), pages 2264-2311, September.
    20. Kuei-Fu Li & Yi-Ping Liao & Hunghua Pan, 2026. "Expanded audit reporting adoption and stock price informativeness: evidence from the UK," Review of Quantitative Finance and Accounting, Springer, vol. 66(4), pages 1709-1741, May.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ahd:journl:v:5:y:2024:i:7:p:62-73. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Radu CIOBANU (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.