Abstract

http://ssrn.com/abstract=2141924
 


 



The Audit Reporting Model: Current Research Synthesis and Implications


Theodore J. Mock


University of Southern California; University of California, Riverside

Jean Bédard


Université Laval - École de comptabilité

Paul Coram


University of Adelaide - Business School; Financial Research Network (FIRN)

Shawn Davis


Emory University

Reza Espahbodi


Washburn University

Rick C. Warne


University of Cincinnati - Department of Accounting

August 30, 2012

Auditing: A Journal of Practice & Theory, 32 (Supplement 1):323-351

Abstract:     
This research synthesis evaluates relevant research concerning the audit report. For too long, there has been a significant “expectations gap” between what financial statement users expect an audit is delivering and what the audit profession believes it is providing. This gap becomes particularly problematic for auditors when there is a “business crisis” and attention is directed to the role of the auditor. Two related gaps are considered in this synthesis, a communications gap and an information gap. All of these gaps relate to the demand for, understanding of, and use of auditor communications, which is the focus of this synthesis.

Our synthesis is driven by two primary research questions: What do financial statement users perceive as information that should be communicated and what does research show to be the effects on users of existing and other auditor communications currently being considered?

As we discuss in detail, prior research does address many aspects of these two questions, but many of the findings are mixed and some important aspects have not been studied. Further research, particularly in areas regarding changes to the audit reporting model currently being considered, could lead to the improvement of the value relevance of auditor services, disclosures, and assurances. The clear interest by regulators and standard setters in such applied research should serve as a strong incentive for academics to conduct such research and for the practicing profession to support it.

Number of Pages in PDF File: 47

Keywords: The Audit Reporting Model, The Audit Report, Auditing, Assurance, Expectation Gap, Financial Statements


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Date posted: September 6, 2012 ; Last revised: January 25, 2016

Suggested Citation

Mock, Theodore J. and Bédard, Jean and Coram, Paul and Davis, Shawn and Espahbodi, Reza and Warne, Rick C., The Audit Reporting Model: Current Research Synthesis and Implications (August 30, 2012). Auditing: A Journal of Practice & Theory, 32 (Supplement 1):323-351. Available at SSRN: http://ssrn.com/abstract=2141924

Contact Information

Theodore J. Mock
University of Southern California ( email )
Los Angeles, CA 90089-0441
United States
University of California, Riverside ( email )
Riverside, CA 92521
United States
Jean Bédard
Université Laval - École de comptabilité ( email )
2325, rue de la Terrasse
Québec, Quebec G1K 7P4 G1V 0A6
Canada
418-656-7055 (Phone)
418-656-2624 (Fax)
Paul J. Coram
University of Adelaide - Business School ( email )
10 Pulteney Street
Adelaide, South Australia 5005
Australia
Financial Research Network (FIRN)
C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

Shawn Davis
Emory University ( email )
201 Dowman Drive
Atlanta, GA 30322
United States
Reza Espahbodi (Contact Author)
Washburn University ( email )
School of Business
1700 SW College Avenue
Topeka, KS 66621
United States
785 670-1587 (Phone)
Rick C. Warne
University of Cincinnati - Department of Accounting ( email )
Cincinnati, OH 45221-0211
United States
Feedback to SSRN


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