Credibility and expectation gap in reporting on uncertainties

Abstract

This paper analyzes and reports on studies that examine the extent to which international auditing boards have accomplished the goal of reducing the expectation gap in reporting on uncertainties. This is because there has been a long‐running controversy between the auditing profession and the community of financial statement users concerning the responsibilities of the auditors to the users. Enron and WorldCom scandals have provoked the public to incite the government and professional bodies to impose stringent regulation in protecting their interests. It also suggests the solutions to minimize the gap and enhance the public’s perception towards the profession.

Citation

Shaikh, J.M. and Talha, M. (2003), "Credibility and expectation gap in reporting on uncertainties", Managerial Auditing Journal, Vol. 18 No. 6/7, pp. 517-529. https://doi.org/10.1108/02686900310482650