Auditing Expectation Gap: An Empirical Study
Auditing Expectation Gap: An Empirical Study

Summary/Abstract: Given its detrimental effect on auditing profession value and usefulness, the Auditing Expectation Gap(AEG) is considered as one of the major concerns not only for auditing profession but also for all financial system stakeholders. This paper examines the existence and the nature of the AEG in Algeria, using porter’s (1993) framework. Through a descriptive and historical approaches, a comprehensive overview regarding Algerian auditing environment as well as a literature reviews, where conducted to explore the historical roots of AEG, its expansion, and its nature. The primary source of data was generated from close ended questionnaire, which was distributed to auditors and Tax-inspectors, which are the main users of audited financial statements in Algeria. The questionnaire covered topics on; audit objectives, auditors’ duties and responsibilities and auditors’ liabilities. Man-Whitney test results of questionnaire survey responses indicate that there aren't statistically significant differences between auditors and Tax-inspectors mean responses, that is to say the AEG does not exist in Algeria. But, both auditors and Tax-inspectors held huge misperceptions regarding auditor’s duties and responsibilities as well as the nature and limitation of an audit, which means there are a reasonableness gap and a performance gap. These findings may be useful as a thinking framework about reforming the auditing profession in Algeria.

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