Audit Expectation‐Performance Gap Revisited: Evidence from New Zealand and the United Kingdom. Part 2: Changes in the Gap in New Zealand 1989–2008 and in the United Kingdom 1999–2008

33 Pages Posted: 11 Oct 2012

See all articles by Brenda Porter

Brenda Porter

affiliation not provided to SSRN

Ciaran Ó. hÓgartaigh

affiliation not provided to SSRN

Rachel F. Baskerville

Victoria University of Wellington - School of Accounting and Commercial Law

Date Written: November 2012

Abstract

Investigation of changes in the audit expectation‐performance gap in New Zealand (NZ) and the United Kingdom (UK) revealed that, between 1989 and 1999, in both countries the reasonableness gap widened as developments in auditing's external environment stimulated an increase in society's unreasonable expectations of auditors but the deficient performance gap narrowed as monitoring of auditors' performance resulted in societal perception of improved performance. Between 1999 and 2008, in the UK, widespread discussion of the environmental developments and related audit issues, along with more stringent monitoring of auditors' performance, resulted in a narrowing of the reasonableness and deficient performance gaps. In NZ, lacking these factors, these gaps widened. Additionally, changes to auditing standards resulted in some ‘reasonably expected’ responsibilities becoming actual responsibilities of auditors and, in both countries, the deficient standards gap narrowed. The research findings illuminate the means by which the audit expectation‐performance gap might be narrowed.

Keywords: Audit expectation‐performance gap, reasonableness gap, deficient standards, deficient performance, society's expectations, monitoring auditors

Suggested Citation

Porter, Brenda and hÓgartaigh, Ciaran Ó. and Baskerville, Rachel F., Audit Expectation‐Performance Gap Revisited: Evidence from New Zealand and the United Kingdom. Part 2: Changes in the Gap in New Zealand 1989–2008 and in the United Kingdom 1999–2008 (November 2012). International Journal of Auditing, Vol. 16, Issue 3, pp. 215-247, 2012, Available at SSRN: https://ssrn.com/abstract=2160112 or http://dx.doi.org/10.1111/j.1099-1123.2011.00444.x

Brenda Porter (Contact Author)

affiliation not provided to SSRN ( email )

Ciaran Ó. HÓgartaigh

affiliation not provided to SSRN

No Address Available

Rachel F. Baskerville

Victoria University of Wellington - School of Accounting and Commercial Law ( email )

Faculty of Commerce and Administration
PO Box 600
Wellington
New Zealand
006444636951 (Phone)
006444635076 (Fax)

HOME PAGE: http://www.victoria.ac.nz/sacl/staff/rachel-baskerville.aspx

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