Expectation Gap Research Articles

DOES INTERNATIONAL FINANCIAL REPORTING STANDARD NARROWS AUDIT EXPECTATION GAP?

The many arguments advanced by scholars as to International Financial Reporting Standard’s capacity to enhance audit procedures and outcomes underscores this research’s quest for determining whether International Financial Reporting Standard could help with the perceptional dilemma that triggered the long lingering Audit expectation gap crisis. To this end, this study assays stakeholders’ perception as to whether the adoption of International Financial Reporting Standard could have certain narrowing impact on Audit expectation gap. The study adopted a mixed research design (i.e. exploratory and survey designs) by which structured questionnaires were administered to a purposeful randomly selected sample of 400 respondents drawn from audit practitioners, academics, accounting standards issuers, and members of professional accounting bodies within the North Central States of Nigeria and the Federal Capital Territory to collect data which were analyzed using multiple regression with the help of STATA 13 software. Result of the analysis revealed that both International Financial Reporting Standard induced quality financial report and complexity of audit work could narrow audit performance expectation gap in a significant positive manner, while International Financial Reporting Standard’s induced audit quality was negative in narrowing the expectation gap. We recommend however, that even with the significant result leading to rejection of the null hypotheses, standard setters should look at ways to draw up standards that will harmonize accounting standards and auditing standards in a way that clearly spell out how every category of reportable transactions should be reviewed and reported so as to improve the quality of what auditors deliver to the public.

The moderating effect of context of reception, labour market and education system on the migrant-native gap in university expectations

ABSTRACT This paper explores the cross-national variation in the gap in university expectations between native and second-generation immigrant students and whether it is moderated by characteristics of the country of residence of children of immigrants. Three domains have been considered at the national level: the context of reception of immigration (legal status of non-national immigrants and views about immigration of the local population); labour market segmentation and education systems (external differentiation). The study tests the general hypothesis that settings that enhance individual autonomy and widen room for choice by removing formal and informal barriers that migrants and their descendants face in everyday life and in specific domains (education and labour market) are associated with a larger gap in university expectations that is favourable to children of immigrants (a larger ‘immigrant advantage’). Applying a two-stage analysis to PISA 2015 data, results provide overall support for this hypothesis. More welcoming contexts of reception are associated with a larger immigrant advantage. External differentiation is negatively associated with it, both for students attending general and vocational tracks, especially the latter, as compared to non-tracked students attending common tracks. There is not a robust association between labour market segmentation and the university expectations’ gap.

AUDIT EXPECTATION GAP BETWEEN ACADEMICS AND AUDITORS IN SRI LANKA

The primary aim is to find out the audit expectation gap between academics and auditors in Sri Lanka. The four main concepts and applications of the audit were tested in this study. They are the auditor’s responsibilities, audit reliability, key audit matters (KAM) & auditing standards (AS), and usefulness of audited financial statements for decision-making. The population of the study is public university academics in the field of accounting and finance, and independent external auditors in Sri Lanka. The researcher used a developed Likert five-point scale questionnaire to collect data from academics and auditors for the study. The developed questionnaire was distributed among 100 academics and external auditors, and 64 responses were received in this study. Descriptive and inferential analyses were performed in this study. Descriptive statistics confirmed that there is an expectation gap between academics and auditors in Sri Lanka. ANOVA and independent sample test confirmed that there is an expectation gap between academics and students, but there is no significant expectation gap. They have a high level of expectation gap regarding key audit matters and auditing standards application, on the other hand, they have a low level of expectation gap on audited financial statements usage in decision making when compare to standard or expected. There is a high level of expectation gap regarding the key audit matters and auditing standards application between auditors and academics in Sri Lanka, however, there is a low level of expectation gap regarding audit reliability between auditors and academics in Sri Lanka. The results of the study highlight that there is audit expectation between auditors and academics in Sri Lanka. They are the fillers of auditing theories and practices in Sri Lanka, therefore regulatory bodies and accounting professional institutions ought to be taken some effective and efficient actions to create better awareness of auditing and ensure adequate auditing education in Sri Lanka for the sustainability of firms and the economy of the country.

Empirical research frameworks in a changing world: The case of audit data analytics

Advances in data analytics is fundamentally changing the field of auditing. The primary objective of this paper is to develop a holistic, multidimensional framework to better understand the dynamics of the diffusion of audit data analytics (ADA). The framework we developed covers categories related to the diffusion of ADA (the technology, the actors using it, and the external rules that regulate it) and the actors reproducing the rules and technologies (focusing on the audit and cognitive processes). We analyze the key findings from 40 empirical studies within and across the interrelated categories of the framework. The findings emphasize that a better understanding of auditors’ judgment and decision making (cognitive processes) is fundamental for a study of the diffusion of ADA. Primary drivers of fundamental changes include audit quality, audit efficiency, and the expectation gap. Our results suggest that ADA competencies should be a professional priority. In addition, conceptual issues (the audit risk model, audit evidence, and audit assertions) and materiality considerations need to be resolved. A solution for these problems is a prerequisite for in-depth changes to audit standards, which in turn will also open the door to the diffusion of ADA.

The social value of health: A frontier analysis of life expectancy gaps across 33 European countries

We estimate the life expectancy gaps that can be bridged by improving the quality of public health and health care policies at the country level. Our model calculates the net effect of amenable deaths on life expectancy after controlling for time effects and factors affecting amenable deaths related to education, health policies (health expenditure to GDP and waiting lists), and per capita income in a two equation system. We further estimate the life expectancy gap that countries with lower quality health systems can bridge by catching up and reaching the existing health quality frontier and compute the social value of that upside potential.

Expatriate management in Japanese firms: paradox of the HR system for Thai self-initiated expatriates

PurposeThis research aims to see whether replication occurs with the focus on the Japanese HR system, following the latest studies on expatriate management in Japan. Whereas the total number of self-initiated expatriates has hugely increased in Japan, the high turnover rate is a big issue. Can this also be evidenced with new data? How does the Japanese HR system, with its notorious reputation for unique people management methods, relate to the expats' reasons for staying in the long or short term?Design/methodology/approachReplication of research is adopted here with an interview-based qualitative method using the same research design as previous literature. The previous research focused on Chinese and Vietnamese self-initiated expatriates, who occupy the majority of expatriate positions in Japan. This study has a new target group of Thai expatriates, who have a relatively higher educational background than some other expatriates and are expected by the Japanese firms to stay over the long term.FindingsReplication of the findings of the latest studies occurs in this research. The turnover rate is as high as other national expatiates, with similar reasons, related to the Japanese HR system. However, there are also different issues. The main reasons they give for not staying in the long-term are unhealthy work habits, followed by slower promotion and ambiguous work content/role. The Japanese HR system is a dehumanising mechanism leading to a stressful work environment, which is the most critical concern for them and the main reason they choose not to remain in the long term.Originality/valuePast studies indicate an expectation gap between Japanese firms and expatriates, which is also found in this study. Additionally, an assumption gap between them about security under the HR system is also confirmed. Security means working healthily for expatriates while it means long-term employment for Japanese firms.

Dimensions of Pandering Perceptions Among Hispanic Americans and Their Effect on Political Trust

ABSTRACT When non-Hispanic candidates make an appeal in Spanish they are typically labeled as “Hispandering.” Some evidence has shown, however, that Hispanics have higher evaluations of candidates who make Spanish appeals, regardless of ethnicity. This paper explores how perceptions of pandering are formed among Hispanics. I expand the expectations gap literature by arguing that trait ownership and expectations are relevant for race. Given the expectation for a candidate’s ability to perform a certain appeal, perceptions of pandering will be conditioned on the candidate’s ability to exceed or fall short of those expectations. I test this idea with Spanish language appeals. I run an experiment where I randomly assign Hispanics to hear a message given by an Anglo or Hispanic candidate where the message is either in English or Spanish. I find support for the expectations gap theory. Anglo candidates, who are not expected to be able to speak Spanish can increase their perceived sincerity by speaking in grammatically correct Spanish. Meanwhile, Hispanic candidates who speak non-native-sounding Spanish have lower evaluations compared to their native-like or English-speaking counterparts. Given the low levels of political trust among Hispanics, I test the implications of perceived pandering on political trust. I run another experiment where I test whether perceiving that one politician panders has spillover effects for other candidates. I find that perceiving pandering decreases trust in that candidate but otherwise pandering had no spillover effect on other candidates’ political trust. These studies help illuminate the important dimensions of pandering perceptions.

Gender gaps in early wage expectations

Using detailed data from a unique survey of high school graduates in Germany, we document a gender gap in expected full-time earnings of more than 15%. We decompose this early gender gap and find that especially differences in coefficients help explain different expectations. In particular, the effects of having time for family as career motive and being first-generation college student are associated with large penalties in female wage expectations exclusively. This is especially true for higher expected career paths. Resulting expected returns to education are associated with college enrollment of women and could thus entrench subsequent gaps in realized earnings.

One-Year All-Cause Mortality and Delivery of the Collaborative Chronic Care Model in General Mental Health Clinics.

This study aimed to determine whether the evidence-based collaborative chronic care model (CCM) is associated with reduced all-cause mortality among adult patients treated in general mental health clinics. Data came from a stepped-wedge, cluster-randomized CCM implementation trial across nine U.S. Department of Veterans Affairs medical centers. Survival analysis was used to estimate the relative effect of the treatment (N=5,570) compared with a control group (N=46,443) over 1 year. After adjustment for site-level and individual-level acute care utilization factors, analyses indicated that patients treated with the CCM experienced a reduction in all-cause mortality relative to patients in the control cohort (hazard ratio=0.76, 95% CI=0.60-0.95). This study is the first in which CCM has been shown to reduce all-cause mortality for patients treated in general mental health clinics. Care delivery models should be considered part of efforts to reduce the life expectancy gap between individuals with psychiatric conditions and those without such conditions.

The expectation gap in psychiatry must be reduced.

The expectation gap in psychiatry must be reduced.

Ideal Types and Ideal(ized) students in Internationalized Post-secondary Pedagogy

This article explores the relevance of Weber’s sociocultural concept of ideal types in the context of modern Canadian post-secondary education. Ideal types are simplified or distilled representations of socio-cultural values, with relevance to various social (Prandy, 2002) and educational (Hayhoe, 2007; Hayhoe & Li, 2017; Wong & Chiu, 2021) analyses. This article builds upon Hayhoe and Li’s (2007) comparison of Confucian and Western ideal types, focusing on implications for internationalized education and implicit values within. The article explores the caveats of reductive thinking regarding cultures, particularly considering culture as a proxy for race where values differ. It revisits research exploring Western students studying in an East Asian context and East Asian students studying in a Western context (Chen, 2014; Maton & Chen, 2020), using ideal types as an analytical lens for underlying values and gaps in expectations. Specifically, it considers the pedagogical implications of the differing educational cultures and values as represented by Western and Confucian ideal types, and how a broader appreciation might supplement teaching approaches founded on either type to be more inclusive and beneficial for the various learners in Canadian higher education.

Comparing high-school and college instructors’ beliefs about college calculus preparation

The expectations gap – the difference between the level at which high schools prepare students and the preparation colleges expect – is believed to be accountable for hindering access to, and success in, higher education. It has been largely attributed to misalignment of priorities and lack of communication among policy makers and educators and should inform instruction at both levels. This study compared expectations of college calculus instructors and of instructors who teach calculus-preparatory courses, in college or high school, on what makes for important preparation for the first college calculus course. A total of N = 293 instructors teaching precalculus and calculus at the high school and college levels, in the United States, completed a survey that assessed participants’ beliefs on three major areas related to calculus preparation and success: the critical content prerequisites for calculus, the importance of different calculus teaching and learning elements discussed in the literature, and the ways in which college calculus instructors are willing to accommodate under-prepared students. This study confirms the existence of an expectations gap on a rather narrower issue ‘adequate preparation for college-level calculus', in terms of content and pedagogy. The significance of the finding and its implications for bridging the expectations gap are discussed.

THE CURRENT STATUS OF AUDITORS’ AND INVESTORS’ PERCEPTIONS OF THE AUDIT EXPECTATION GAP

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.

Life Expectancy Gaps Among Black and White Persons and Contributing Causes of Death in 3 Large US Cities, 2018-2019

US cities have substantial, but varying, levels of racial mortality inequities, a consequence of structural racism. As committed partners increasingly pledge to eliminate health inequities, local data are required to focus and unify efforts. To analyze the contributions of 26 cause-of-death categories to Black to White life expectancy gaps within 3 large US cities. In this cross-sectional study, data were extracted from the 2018 and 2019 National Vital Statistics System Multiple Cause of Death Restricted Use data files for deaths by race, ethnicity, sex, age, place of residence, and underlying and contributing causes of death in Baltimore, Maryland; Houston, Texas; and Los Angeles, California. Life expectancy at birth was calculated for non-Hispanic Black and non-Hispanic White populations overall and by sex using abridged life tables with 5-year age intervals. Data analysis was performed from February to May 2022. Using the Arriaga method, the proportion of the Black to White life expectancy gap was calculated overall and by sex for each city that was attributable to 26 cause-of-death categories defined using the International Statistical Classification of Diseases and Related Health Problems, Tenth Revision codes for underlying and contributing causes of death. A total of 66 321 death records from 2018 to 2019 were analyzed, with 29 057 individuals (44%) were identified as Black, 34 745 (52%) as male, and 46 128 (70%) as aged 65 years and older. Black to White life expectancy gaps were 7.60 years for Baltimore, 8.06 years for Houston, and 9.57 years for Los Angeles. Circulatory diseases, cancer, injuries, and diabetes and endocrine disorders were top contributors to the gaps, although the order and magnitude varied by city. The contribution of circulatory diseases was 11.3 percentage points higher in Los Angeles than in Baltimore (3.76 years [39.3%] vs 2.12 years [28.0%]). The contribution of injuries to Baltimore's racial gap (2.22 years [29.3%]) was twice as large as in Houston (1.11 years [13.8%]) and Los Angeles (1.36 years [14.2%]). By assessing the composition of Black to White life expectancy gaps for 3 large US cities and categorizing deaths at a more granular level than past studies, this study provides insight into the differing underpinnings of urban inequities. This type of local data can support local resource allocation that more effectively addresses racial inequities.

Audit Digitalization and Its Consequences on the Audit Expectation Gap: A Critical Perspective

SYNOPSISThis study examines how a paradigm shift from traditional to digital audits could affect the audit expectation gap. It uncovers possible new areas of the expectation gap and threats and challenges resulting from this paradigm shift. The findings suggest that audit digitalization will result in the audit profession transitioning from the defensive approach of educating users on auditors’ duties to a constructive approach of using digital tools to perform some of the duties that users expect of auditors. Specifically, digital technologies have the potential to enhance internal controls and facilitate fraud prevention and detection, thus narrowing the expectation gap in relation to these critical issues. It may further accelerate the elimination of future challenges and threats and the narrowing of future expectation gaps. The potential benefits of switching to the constructive approach are lower costs for audit firms, enhanced audit quality, and improved client perceptions of auditors.

Audit Expectations Gap: Testing the Empirical Evidence from Jordan using Two Levels of Stakeholders

The main objective of this study is to empirically test the existence of an audit expectations gap in the case of Jordan. The study aims to identify whether the audit expectations gap exists between auditors and investors, and between auditors and financial managers, or not. The research data were collected from 62 respondents using a structured questionnaire before being analyzed using SPSS-26. The study findings revealed that a significant audit expectations gap does exist between auditors and investors, and between auditors and financial managers. The results also show that the gap between auditors and financial managers is relatively small compared to the gap between auditors and investors. The study explores the reasons behind the audit expectations gap and suggests possible solutions to overcoming it.

Educational Expectation Gaps Between Second-Generation Immigrant and Ethnic Majority Students in a Comparative Perspective: The Moderating Role of Educational Tracking

This paper investigates the influence of educational tracking on immigrant educational expectation gaps in Sweden, England, the Netherlands, and Germany. To account for heterogeneity in immigrant children's origin countries, this paper additionally focuses on the educational selectivity of immigrant parents. The article argues that with a greater degree of tracking, students receive stronger track signals about their ability and their future opportunities, which should reduce the influence of immigrant parents’ aspirations and mitigate immigrant students’ lower responsiveness to school ability. As a result, immigrant students in countries with a high degree of tracking should have less inflated expectations that are more similar to ethnic majority students. Additionally, the moderating effect that tracking can have on the influence of parental aspirations on immigrant students’ educational expectations should mitigate the beneficial effect of immigrant parents’ selectivity in highly versus lowly tracked countries. Findings based on two waves of the CILS4EU data reveal that second-generation immigrant students have higher educational expectations than ethnic majority students in all countries except Germany. No significant differences are found relating to parents’ educational selectivity. The results support the assumption that stronger track signals in countries with a higher degree of tracking lead to higher responsiveness to school ability among second-generation immigrant students. No support is found for a reduced influence of parental aspirations on the immigrant expectation gap in countries with a higher tracking degree. This study contributes to research on immigrant expectation gaps by highlighting the specific mechanisms through which tracking influences operate.

Sowing Seeds of Social Consciousness? Linking Student Engagement and Community Engagement Through Service Learning

The current emphasis by government and private sectors on issues surrounding social concerns, sustainability, and community-mindedness has prominently trickled into education institutions. This paper proposes a perspective that they can be tapped with significant potential through a thoughtful process of addressing various groups of community needs under the right conditions. With many higher education institutions implementing community service as modules, there needs to be a deeper look at how community service outcomes can expand to a broader scope of community engagement through service learning and how this can influence student engagement. Additionally, to explore the conditions that could possibly make these modules or programs effective for not just social purpose outcomes and social consciousness but filling in gaps in personal development and employability expectations. With a look at past community projects and campaigns as well as students’ perceptions of the causes they create and follow through, the paper hopes to provide a practical framework for implications and considerations of the Service-Learning approach.

Financial Inclusion Expectation Gap

Abstract The objective of this article is to define the financial inclusion expectation gap, offer some insight into the nature and the causes of it, and suggest ways to reduce the gap. The discussion in the article provides helpful insights into this problem towards achieving the United Nations Sustainable Development Goals. It is hoped that such an attempt can provide insights to understand the expectation gap in financial inclusion.

The Effect of Social Capital on Auditor’s Performance

This paper investigates the relationship between social capital and auditor’s performance in Iranian listed firms. The sample included 128 firms on the Tehran Stock Exchange from 2014 to 2020. The research method was descriptive-correlational, and the relationship between research variables was explained using regression models based on the panel data. The results illustrated that social capital positively correlates with auditor performance and Audit report quality. In other words, social capital decreases audit opinion shopping, audit expectation gap, internal control weakness, and audit report lag. Therefore, society’s influential assets, social capital, and audit report quality strongly influence the auditor’s performance. The auditor’s performance affects the probability of discovery and reporting material errors and misstatements. Therefore, recognizing influential factors on auditors’ performance can improve the quality of audit reports.