The expectation gap in the Statutory audit of quoted Companies in Kenya
Abstract
This study sought to find out whether an expectation gap exists in the audit of quoted
companies in Kenya. The study also sought to find out whether the public expectation or"
the auditor is reasonable and achievable.
In order to"achieve the objectives primary data on semantic differential belief statements
on respondents' opinions and beliefs about the audit functions was collected from
respondents in Nairobi.
The analyses of the gathered data revealed that an expectation gap particularly in relation
to the level and nature of auditor's responsibilities .. The expectation gap was found to be
particularly wide on the issues of the auditor's responsibilities for fraud detection and
prevention and the auditor's responsibilities for the soundness of the internal control
structure of the entity. To a lesser extent, an expectation gap was found concerning the
responsibility for the maintaining of accounting records. a narrow gap was also observed
. on the issue of the objectivity of the auditor with the majority agreeing that the auditor is
unbiased and objective.
A narrow gap was also observed on the reliability statement, a narrow expectation gap
"vas also recorded on the issue of the usefulness of audited financial statements in
monitoring the performers of the entity, on the issue of usefulness of the audited financial
statements in decision-making and on giving assurance on the efficiency of management.
A high proportion of the respondents' belief that competitive pressure among audit firms
affects the quality of audit work and that provision of non-audit services by an auditor to
the client compromises his independence
Citation
MBASponsorhip
University of NairobiPublisher
University of Nairobi School of Business, College of Humanities and Social Sciences