An Analysis of the Expectations Gap:Can it be eliminated?

Overseas Engish海外英诗2011年1月An Analysis of the Expectations Gap: Can it be eliminated?旷群(上海大学悉尼T.商学院.上海201800)Abstract: The "expectaions gap" signifies the diferences between what the public expects from an audit andprefers the audit objectives to be. Although the gap exists, it seems that the profesions trust that it could be eliminated. In this paper, fur-ther evidence was provided to deny the above point by exploring the inevitaility nature and the structure of the audit expectaion gap. Inaddition, the author concludes that expectations gap cannot be eliminated; instead, the only thing can be done is to narrow down the gapKey words: expectation gap; eliminate; narrow down中图分类号:F239文献标识码:A文章编号:1009- -5039(2011)01- -0286 -031 Introductionment, auditors may make some misstatement about financial state-ment or ignore some fraud unconsciously. Therefore, audits cannotExpectations gap has existed for at least three derades.fully guarantee all fraud will be detected and prevented, ThroughNowadays, as crticism and litigation which auditors face increas-this analysis, we may discover that the existence of the gap is ob-ing. the "expectations gap" becomes more and more attractive. Thejective and inextirpable."expectations gap", signifying the differences between what thepublic expects from an audit and what the auditing profession3 The structure of the expectations gapprefers the audit objectivess to be, has been a recuring issue in theAfter analyzing the nature of the expectations gap, we shouldauditing literature (chandler & Edwards, 1996). Public still regardpay more altention to the structure of the expectations gap. Parsingfraud detection as the primary task of auditors, while the auditingcomponents will be useful to prove the impossibility of eliminatingprofession argues that the most important audit objective is note expectations gap. In 1993, academics decomposed the auditfraud detection or fraud reporting The common view in the pro-expectation gap into three main components. First, deficient per-fession is that the public misunderstands the role of the auditor.formnance of independent auditor, caused by fail to hew to promul-Hence, the divergence of the two standpoints results in forming thegated standards. Second, deficient standards that fail to meet theexpectations gap. Although the gap exists, the profession seems toexpectations of the public. The third part is unreasonable expecta-rust that this gap can be eliminated. Is it possible to eliminate thetions of the public (Thomas et al, 2004). We will briefly analyse"expetations gap"? Or the gap only can be narrowed? So we willthese threeethree aspeetsin the fllowing context.eritically discuss the profession s point of view in this article.Deficient performance due to the gap between auditors'2 The nature of the audit expectations gapperceived performance and the auditors ' existing duties, here theduties are defined by the law and professional promulgations.To understand the audit expectations gap, we should compre-Auditors ' capabilities of auditing is relative limited. If an auditorhend the definition of the expectations gap. There are many defi-lack "due professional care", for example, misjudgments, ignoringnitions about "audit expectations gap"origins of auditing canbe traced hack tn (reeck, Egypian and earlier civilizations (Coop-ne important audit procedure or adopt unbfiting technology, heer, 1886; Worthington, 1895; Brown, 1905; Woolf, 1912). In 1974,or she will afect the quality of auditing. Some textbooks point outthat this gap can be narowed by closer monitoring of auditors'Liggio defined the "expectations gap" as the differences betweenperformance and by improving the professionaleducation ofthe expected performance "as envisioned by the independent aC-countant and by the user of financial statements”(Liggio, 1974).practitioners. Improved or more extensive disciplinary proceduresmay be helpful for promoting compliance with statutory and pro-Thereafter, his definition was developed via the Cohen Commis-fessional requirements. However, in the auditing field, till now nosion (CAR, 1978). Till now the more appropriately accepted one isscholar asserts there is a way to eliminate this gap. In practice,that the differences between what the public expects from an auditalthough few civil cases about financial scandals emerged fromand what the auditing profession prefers the audit objectives to behe late 1990s to 2000s, early evidence implies a lack of due(chandler & Edwards, 1996). We also note the meaning of the ex-professional care and independence on the part of many Big Fourpectations gap maintains change as the transformation of society.auditing firms (Thomas et al., 2004).Hence, we can say sociality is one of the characters of the expec-Deficient standards represent the gap between the auditors'tations gap. Further to dig the nature of the gap, on the part ofexisting duties and the duties which may reasonably be expectedpublic, auditors are expected to accept prime responsibility for fi-of auditors. The existing_ duties are the expectation of currentnancial statements, and they should check all of the business, giveprofessional standards and statutes. Meanwhile, the ltter duties,warming to public, in particeular, they have responsibility of detect-which are cost-beneficial for auditors to perform, are the expecta-ing fraud. SSuch expeclations go beyond visibly the actual perfor-tion that can be achieved by auditors in perfect condition. Themance and standard 'of auditors. In practice, auditors' perfor-difference between the two "duties" is caused by the diverse pro-mances always are afected by the pressure of clients. In relationducing conditions which include auditing circumstance, the levelto this point, Humphrey has described that, "Greater professionalI the anticipation of auditing risk. Since the costpriority would appear to have been placed on the need to maintainot technology,is take into account, as well as the condition of two duties is dif-the auditors' relationship with management than on satisfying thedemands of the public" (Humphrey, Turley & Moizer, 1993b). It is- xistence of the expecta-also difficult to perform a 100% check for auditors in a limitedtion中国煤化工We also find that experiod. Moreover, when facing the deliberate colluder of manage-istingYHCNMHG: public or regulators as收稿日期:2010-10-09修回 日期:2010-10-27作者简介:旷群(1974-),女,湖南涟源人,讲师,硕士,主要研究方向为英语教学法,澳大利亚研究。本栏目责任编辑:代影Overseas English 海外美语2011年1月clients for six months.lation, we can find these steps aimed to appease the eriticism ofIn 2001, the bankrupt of US energy giant Enron is a greatauditors. Such approaches are useless to eliminate the: expecta-shock for all over the world, not just in the auditing world. Thistions gap as what the auditing profession expects to. Hence,scandal may become the biggest ever corporate failure in the US.through analyzing the nature and the slructure of the gap, we mayWhen the energy giant collapsed, many serious financial prob-get a conclusion that it is unadvisable to regard the expectationslems were emerged before the publie. Arthur Andersen, the ac-gap can be eliminated. Such neglect of the existence of the: gapcountancy fim employed to audit Enron, played an importantcould lead to enlarge its size in curtain degree.role in this scandal. Andersen was convicted of obstruction ofReferences:justice for covering the real financial trouble of Enron and de-[1] Brown R.A History of Accounting and Accountant[M].Edin-stroying Enron documents.For the auditing deficienciese, the publication of Accountaneyburgh: T.C. & EC. Jack,1905.had a following descripion about the different perceptions be-[2] Cooper E.Chartered Accountants as Auditors of Companies[]tween the public and the profession. "whenever there is a suddenThe Acnoanan88131;4-649[3] Cousins J,Mitchell A,Sikka P.Race to the Bottom: The Case ofcollapse, people tend to assume that auditors negligently failed tospot that somehing was wrong or worse, knew all about it but keptthe Accountancy Fims[M].AABA,2004.their mouths shu.. 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Assesing Second Language1)我不记得见过该词汇Vocabulary Knowledge:Depth Versus Breadth [J].The Canadian2)我见过该词,但不知道它的意义Modern Language Review.1996(53):191-218.3)我见过该词,我想它的意义应该.....[2] Read J.The Development ofa New Measure of L2 Vo-cabul-93)03)335 -371.5)我知道如何在句子中运用该词中国煤化工ing Vocabulary[M].NewParibakht and Wesche设计的词汇知识量表VocabularyYork:lCNMH GKnowledge Scale(VKS)首次面世是在1993年,受到普遍认可并Vocabulary through a得到广泛使用。1996年，两人又再次证明了此测试在词汇附带Word Knowledge Framework [J].Studies in Second Language Ac-习得中的信度和效度。quisition,1997(19):17-36.在这个量表中，受试者自觉汇报他们对某个单词的认知88 红术思海栏目赉任鳊辑:代影万万数据