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An Investigation ofAudit Expectation Gap in Bangladesh

Author

Listed:
  • Taslima Akther

    (Department of Accounting & Information Systems, Faculty of Business Studies, Jagannath University.)

  • Xu Fengju

    (School of Management, Wuhan University of Technology, Wuhan, Hubei-430070, People’s Republic of China.)

  • Md Ziaul Haque

    (Ph.D.Fellow, Universityof International Business and Economics, China.)

Abstract

Massive Global corporate scandals, financial crisis and collapses of large entities have diluted the investors’ confidence in the worlds capital market The auditing profession has also come under the spotlight, following the melodramatic flop of eminent companies without any prior warning signals and highlighted the miracle phenomena, the audit expectation gap (AEG). Based on a questionnaire survey with auditors and investors, this paper discovers significant audit expectation gap (AEG) in the areas of auditor’s general responsibility, auditor’s responsibility for fraud detection, auditor’s responsibility forinternal control reporting assessment, meaning of the audit report, and also auditor’s responsibility for going concern reporting in Bangladesh. No expectation gap is emerged regarding the usefulness of audit report. Most of the gap has been refereed asreasonableness gap, but it can lead the standard setters and the practitioners of audit profession to set higher standards of performance.

Suggested Citation

  • Taslima Akther & Xu Fengju & Md Ziaul Haque, 2019. "An Investigation ofAudit Expectation Gap in Bangladesh," Journal of Business, LAR Center Press, vol. 4(2), pages 1-11, February.
    • Handle: RePEc:lrc:larjob:v:4:y:2019:i:2:p:1-11
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Audit expectation gap (AEG); reasonableness gap; Bangladesh.;
    All these keywords.

    JEL classification:

    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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