The report of the audit expectation gap and audit market

Abstract

<p>After the collapse of Carillion Plc, the big four audit firms received criticisms. This report focuses on the audit expectation gap and the audit market to explain this phenomenon and solve it. The audit expectation gap indicates the gap between what the audit report users expect the auditors to do and what they have done. The audit market contains the competition in the audit industry, and the breaking up of the big four can increase the competition in the audit market. Thus, the public’s trust in audit firms can be increased.</p>