Investors and financial statement users long have agreed on the usefulness of the audit in financial reporting. Over time, however, auditors have been expected to provide assurance in varying degrees and for different purposes. Differences in perception -- especially regarding assurances provided -- between users, preparers and auditors have been termed the "expectation gap. This article provides some startling evidence of the existence of such a gap in investor perceptions of the assurance provided by an audit.
Copyright © 1994 American Institute of Certified Public Accountants. This article first appeared in Journal of Accountancy, January 1994, 60-66.
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Geiger, Marshall A. "Investor Views of Audit Assurance: Recent Evidence of the Expectation Gap." Journal of Accountancy, January 1994, 60-66.