An investigation of the expectation gap in Egypt

By Rob Dixon, A. Woodhead, M. Sohliman. 2006

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Purpose – Investors and financial statement users may have differing beliefs about the responsibility of an independent accounting firm performing an audit of a client's financial statements. This study aims to investigate the existence of an audit expectation gap between auditors and financial statement users in Egypt.Design/methodology/approach – The research method adopted in this study is identical to that used by Schelluch, Best et al. and Fadzly and Ahmed.Findings – The results found evidence of a wide audit expectation gap in Egypt in the areas of auditor responsibilities for fraud prevention, maintenance of accounting records, and auditor judgment in the selection of audit procedures. To a lesser extent, an expectation gap was found concerning the reliability of audit and audited financial statements, and the usefulness of audit.Research limitations/implications – The different economic and cultural conditions in Egypt may restrict the generalisability of this study.Practical implications – In ord...

Subfields: Accounting, Finance

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