The Audit Expectations Gap and the Role of Audit Education: Evidence from Sri Lanka

• • J.S. Kumari
    University of Rajarata, Sri Lanka
  • A.R. Ajward
    University of Sri Jayewardenepura, Sri Lanka
  • D.B.P.H. Dissabandara
    University of Sri Jayewardenepura, Sri Lanka
  • Abstract
    The study examined the status and impact of audit education on the audit expectation gap, as existence of such a gap is noted to be harmful to the accounting and auditing profession. Accordingly, undergraduates of a regional national university in Sri Lanka (in three categories as: undergraduates who had not followed an auditing course, who had followed a basic auditing course, and who had followed an advanced auditing course) and professional auditors were selected and a questionnaire survey that included statements on the duties of the auditors was administered. The results of the independent sample t-test indicate the existence of an audit expectation gap in the Sri Lankan context; and that audit education had an effect in reducing such a gap. However, further analysis indicated that only an advanced auditing course had resulted in minimizing such expectation gap (particularly in reducing the unreasonable expectation gap) compared to who had followed a basic auditing course. These findings are expected to have significant educational policy implications.
  • Keywords
    Audit Education, Audit Expectation Gap, Professional Auditors, Undergraduates

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