Abstract
Throughout this study the term “expectation gap” refers to the difference between (1) what the public and financial statement users believe the responsibilities of auditors to be, and (2) what auditors believe their responsibilities are, as in McEnroe and Martens, 2001 (hereafter MM 2001). Approximately 20 years have elapsed since MM 2001 and much has happened in the area of audit failures (i.e. Enron, WorldCom) as well as perceived enhancements (i.e. Sarbanes-Oxley Act). We replicate MM 2001 in order to measure the impact of such events on the expectation gap through analyzing survey responses from auditors, investors, and CFOs. Our findings indicate that two expectation gaps identified by MM 2001 still exist; we believe they can be addressed and perhaps eradicated with educational measures. Our findings additionally indicate that four expectation gaps documented in MM 2001 have been eliminated over time, suggesting that auditors’ perceptions of their role, especially in the area of detecting fraud, has been enhanced.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
