Study On The Audit Expectation Gap And Its Control

Today, the existence of the Audit Expectation Gap and its expansion has been a big threat to the audit professions. After the deep investigation, the professions also found out that this gap dramatically contributed to the accountant's legal liability as well as the audit risk. So the expectation gap has been a common concern to the theory circle and practice circle. In the article, the writer probes in to the composition, the real reason and the treatments of the audit expectation gap, based on the relevant study at home and abroad, using the method of normative study and positive study. The audit expectation can be divided into the reasonable part and the unreasonable part, with the cut-off point of auditing standard. While the reasonable audit expectation gap can be divided into two logical level including implicit auditing approach gap and explicit practice gap, which is the logical path of later research and treatment of the audit expectation gap. With the base of analysis of the audit demand and supply, the writer uses the balance theory of economics to probes into the deep-seated reason of each part gap. Finally, the writer lists all kinds of measures to treat the expectation gap on the basis of above-mentioned analysis.