NORMA eResearch @NCI Library

Audit Expectation Gap in India and Views of Indian Audit Practitioners on narrowing the gap

Kapoor, Prachi (2021) Audit Expectation Gap in India and Views of Indian Audit Practitioners on narrowing the gap. Masters thesis, Dublin, National College of Ireland.

[thumbnail of Master of Science]
PDF (Master of Science)
Download (1MB) | Preview


Audit expectation gap is a global phenomenon and yet is the most ignored matter of discourse when it comes to developing countries like India. In recent years, the need to discuss expectation gap in audit has grown due to extensive criticism of profession and auditing standards. The recent financial scandals such as Punjab National Bank and Gitanjali Gems scam in India invite maximum ire for the auditors apart from promoters and directors of these corporates.

This research study aims at examining the perspectives of auditors and users of financial information in India on Audit expectation gap by capturing their views on each component of the gap- knowledge gap, performance gap and evolution gap. The research also examines the views of Indian audit practitioners on narrowing this gap. Varying expectations of users of financial statements from auditors can lead to criticism of the profession even though the auditors are working within the scope of their work. This can break the confidence of the capital market participants and society at large.

This research indicates that there is a strong existence of knowledge and performance gap in India. The participants feel that there is a need to educate people about audit and its scope in India, but the aim should not be to educate everyone. The study also uncovers how the gap emerging from deficient performance and poorly written standards can be addressed. Lastly, the study revealed that there is a need to bring auditors, stakeholders, clients, government, journalists, and regulators together, understand each of their expectations and address their reasonable expectations, and this should be an ongoing practice and not just a response to corporate failures and financial scandals.

Item Type: Thesis (Masters)
Subjects: D History General and Old World > DS Asia
H Social Sciences > HF Commerce > HF5601 Accounting
Divisions: School of Business > Master of Science in Management
Depositing User: Clara Chan
Date Deposited: 14 Feb 2022 15:35
Last Modified: 14 Feb 2022 15:35

Actions (login required)

View Item View Item