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International Journal of Technology Enhancements and Emerging Engineering Research (ISSN 2347-4289)
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IJTEEE >> Volume 2 - Issue 7, July 2014 Edition



International Journal of Technology Enhancements and Emerging Engineering Research  
International Journal of Technology Enhancements and Emerging Engineering Research

Website: http://www.ijteee.org

ISSN 2347-4289



Bridging The Expectation Gap In Auditing: The Role Of The Accounting Profession In Nigeria

[Full Text]

 

AUTHOR(S)

Ijeoma, N. B.

 

KEYWORDS

Keywords : Accounting; Auditing; Expectation gap; Financial statement; Investors; Misstatement

 

ABSTRACT

ABSTRACT: The rise in public expectations in Nigeria especially with the series of financial failures that occurred during the recessionary years of late 1980’s and 1990’s when banks were certified as being profitable and within a year or two recorded sudden collapse. Members of the public queried the role auditors played when these banks where presenting healthy financial statements when they were in serious liquidity and profitability crises. These questions arose as a result of the wrong perception of the main audit objective by the public. These leads to auditors being very cautious about accepting absolute reporting responsibilities while the users of account statements on the otherhand become afraid of information risk. This study revealed and identified that there has been an existing gap between the assurances auditors provide on management-complied financial information and the expectations of investor and other financial statement users. Recent efforts to close the expectation gap have focused on influencing public opinion on the role auditors should play and changing professional standards to ensure an audit designed to provide reasonable assurance so that material errors, irregularities and misstatement in financial statements will be detected and not absolute assurance as desired by the investors. Investors views should serve as a reminder to the profession and individual auditors that professional audit standard of absolute do not dictate public opinion.

 

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