Journal ArticleDOI
The Expanded Audit Report—An Empirical Investigation
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In this article, a UK derivative of the US expanded report has the power, compared to the current short form report used in the UK, to help the reasonably intelligent reader to understand better the audit and the auditor's role.Abstract:
There is a widespread concern about the ‘expectations’ gap in auditing. To help close this gap the profession in the United States has recently expanded its standard audit report to give a fuller understanding of the scope, nature and significance of the audit. The primary research question addressed in this paper is whether a UK derivative of the US expanded report has the power, compared to the current short form report used in the UK, to help the reasonably intelligent reader to understand better the audit and the auditor's role. The research was conducted by experiment with 140 part-time MBA students from the University of Edinburgh. The results provide clear evidence of the ability of the UK derivative to change reader perceptions. Moreover significant changes are not limited to matters directly addressed in the expansion of the audit report. A ‘halo’ effect is observed whereby the expanded wording seems to generate a feeling of well-being which spills over to matters not directly addressed ...read more
Citations
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Journal ArticleDOI
The Audit Expectations Gap in Britain: An Empirical Investigation
TL;DR: In this article, the authors report the results of a postal questionnaire survey to ascertain the perceptions of individuals about audit expectations issues in Britain, including what the role of the auditor is and should be; what prohibitions and regulations should be placed on audit firms; and what decisions auditors could be expected to make in a series of mini-cases.
Journal ArticleDOI
Perceptions and Misperceptions Regarding the Unqualified Auditor's Report by Financial Statement Preparers, Users, and Auditors
TL;DR: The authors conducted focus groups with five different stakeholder groups (CFOs, CPA, users, analysts, and non-professional investors) to investigate perceptions and misperceptions regarding the auditor's report, and found that financial statement users value the audit, but do not read the entire audit report.
Journal ArticleDOI
An Empirical Investigation of the Audit Expectation Gap: Australian Evidence
Gary S. Monroe,David Woodliff +1 more
TL;DR: In this article, the authors examined the existence and nature of the expectation gap in Australia and whether recent changes to the wording of audit reports have affected that gap, and found that there was a gap between auditors and the various user groups under the old report wording prior to the issuance of the revised AUP 3.
Journal ArticleDOI
The Audit Reporting Model: Current Research Synthesis and Implications
Theodore J. Mock,Theodore J. Mock,Jean C. Bedard,Paul Coram,Shawn M. Davis,Reza Espahbodi,Rick C. Warne +6 more
TL;DR: In this paper, the authors evaluate relevant research concerning the auditor's report, focusing on the demand for, understanding of, and use of auditor communications, which is the focus of this synthesis.
Journal ArticleDOI
Evidence of the audit expectation gap in Singapore
TL;DR: The results strongly support the adoption of the long-form audit report in Singapore if Singaporean professionals are serious about reducing the expectation gap and improving decision-making by financial statement users as discussed by the authors.
References
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Book
Nonparametric statistics for the behavioral sciences
TL;DR: This is the revision of the classic text in the field, adding two new chapters and thoroughly updating all others as discussed by the authors, and the original structure is retained, and the book continues to serve as a combined text/reference.
Journal ArticleDOI
Bankers' and Auditors' Perceptions of the Message Communicated by the Audit Report
TL;DR: The auditor's report is a major vehicle of communication between the auditor and those who use his work as discussed by the authors, and the emphasis in this communication process is upon reporting circumstances which result in departures from the auditor's standard report.
Journal ArticleDOI
Narrative Disclosures Contained in Financial Reports: Means of Communication or Manipulation?
TL;DR: In this article, the authors discuss Narrative Disclosures Contained in Financial Reports: Means of Communication or Manipulation? Accounting and Business Research: Vol. 9, No. 35, pp. 179-190.
Journal ArticleDOI
Effects of Audit Report Wording Changes on the Perceived Message
TL;DR: In this article, the authors examine empirically whether either wording changes such as proposed by the ASB or audit report knowledge can cause material differences in the perceived messages of the audit reports.
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