The Audit Expectation Gap in Singapore: An Empirical Study of Company Audit Objectives

Abstract

To study the audit expectation gap, a survey questionnaire listing 13 possible company audit objectives was administered to 500 auditors and 500 non‐auditors in Singapore. The overall response rate is 48.7% (i.e., 487). ANOVA and multiple comparison (SNK) results show that auditors perceive significantly more strongly than non‐auditors that giving a true and fair opinion and providing aid and advice on accounting matters are important and appropriate company audit objectives. On the other hand, non‐auditors perceive significantly more strongly than auditors that detecting and preventing major errors, fraud or illegal acts; satisfaction of the requirements of authorities; and ensuring the accuracy of financial accounts are important and appropriate company audit objectives. Overall, it can be concluded that an audit expectation gap with respect to company audit objectives exists between auditors and non‐auditors and that the latter place a significantly greater demand on audits and auditors than what auditors themselves perceive their roles and responsibilities to be.

Citation

Chye Koh, H. (2000), "The Audit Expectation Gap in Singapore: An Empirical Study of Company Audit Objectives", Asian Review of Accounting, Vol. 8 No. 1, pp. 83-105. https://doi.org/10.1108/eb060722