Auditors' and Investors' Perceptions of the “Expectation Gap”

2001 ◽  
Vol 15 (4) ◽  
pp. 345-358 ◽  
Author(s):  
John E. McEnroe ◽  
Stanley C. Martens
Keyword(s):  
Empirical Studies ◽  
Primary User ◽  
Financial Statement ◽  
User Group ◽  
Accounting Profession ◽  
The Public ◽  
Government Accounting ◽  
Expectation Gap ◽  
The Difference

The auditing “expectation gap” refers to the difference between (1) what the public and other financial statement users perceive auditors' responsibilities to be and (2) what auditors believe their responsibilities entail. The notion of this divergence receives much attention in the accounting literature (i.e., Commission on Auditors' Responsibilities 1978; Guy and Sullivan 1988; AICPA 1993; U.S. Government Accounting Office 1996). Although prior empirical studies encompass certain expectations associated with a range of audit services, these papers often involve the opinions of bankers as the primary user group employed in the research (Nair and Rittenberg 1987; Lowe and Pany 1995). In contrast, this study extends the prior research by directly comparing audit partners' and investors' perceptions of auditors' responsibilities involving various dimensions of the attest function. We conducted the study to determine if an expectation gap currently exists and we find that it does; investors have higher expectations for various facets and/or assurances of the audit than do auditors. Our findings serve as evidence that the accounting profession should engage in appropriate measures to reduce this expectation gap.

Explaining the Difference of Work Attitudes Between Public and Nonprofit Managers

2011 ◽  
Vol 42 (4) ◽  
pp. 437-460 ◽  
Author(s):  
Chung-An Chen
Keyword(s):  
Public Sector ◽  
Extrinsic Motivation ◽  
Empirical Studies ◽  
Job Involvement ◽  
Work Attitudes ◽  
The Public ◽  
Public Managers ◽  
Red Tape ◽  
The Difference ◽  
Positive Work

Work attitudes (e.g., job satisfaction, job involvement, organizational commitment, etc.) have long been important indicators for managers and researchers in evaluating whether one is motivated to work. Existing empirical studies tend to suggest that public managers are less likely to exhibit positive work attitudes as compared with their private sector peers. However, literature about the comparison of work attitudes between public and nonprofit managers is scant. The current study addresses this topic. By using the National Administrative Studies Project-III (NASP-III) survey data, the author found that nonprofit managers are more likely than public managers to show positive work attitudes. This attitudinal difference, based on the results of mediation tests, originates from two important reasons. First, higher levels of rule constraints (i.e., red tape and personnel flexibility) in the public sector undermine managers’ work attitudes. Second, individuals attracted to work in the public sector have stronger extrinsic motivation, stronger amotivation, and weaker intrinsic motivation. These motivation styles compromise their work attitudes.

scholarly journals Competence of Human Resources and the Government Internal Control System (SPIP) and the Effects on the Financial Statement Quality of Public Sercvice Agency (BLU) Moderated by Government Accounting Standard (SAP)

2017 ◽  
Vol 8 (2) ◽  
pp. 98
Author(s):  
Inggrid Panjaitan
Keyword(s):  
Public Service ◽  
Internal Control ◽  
Financial Statement ◽  
Service Agency ◽  
Accounting Standard ◽  
The Public ◽  
Government Accounting ◽  
Internal Control System ◽  
The Government

<p>The aim of this research is to examine the effects of Human Resources Competence and the Government Internal Control System (SPIP) on the Quality of Financial Statements of the Public Service Agency with the Government Accounting Standard (SAP) as moderating variable. The research was conducted at the Public Service Agency of Government Hospital in Jakarta under the Ministry of Health. The sampling technique in this study used purposive sampling method (sampling intentionally in accordance with the requirements of samples required). Questionnaires were distributed as many as 85 questionnaires to some employees in the finance department and others that related to the making of financial statement at the Public Service Agency of Government Hospital under the Ministry of Health. The results showed that HR Competency significantly affected the quality of Public Service Agency Financial Statement. SPIP significantly affected the quality of Public Service Agency Financial Statement. Moderation of Government Accounting Standard (SAP) significantly affected and weakened the effect of HR Competency on the Quality of Public Service Agency Financial Statement. Moderation of Government Accounting Standards did not affect significant and strengthened the effect of SPIP on the Quality of Public Service Agency Financial Statement.</p>

scholarly journals Analisis Pengungkapan Laporan Keuangan Pemerintah Daerah Ditinjau dari Akun Persediaan di Sumatera

2021 ◽  
Vol 5 (1) ◽  
pp. 23
Author(s):  
Putri Intan Permata Sari ◽  
Suhairi Suhairi ◽  
Nini Syofriyeni
Keyword(s):  
Content Analysis ◽  
Local Government ◽  
Accounting Standards ◽  
Secondary Data ◽  
Financial Statement ◽  
Primary Data ◽  
Audit Report ◽  
Knowing How ◽  
Government Accounting ◽  
The Difference

This study attemps to analyze disclosure of inventories account in local government financial statement (LGFS) regencies and cities in Sumatera in the year 2017 on the disclosure in PP 71/2010 Government Accounting Standards Number 5, as well as perceive the difference disclosure of a build up in inventories account on LGFS that obtains unqualified opinion, qualified opinion, disclaimer opinion, and knowing how the perception of BPK toward the disclosure of an inventories account. The data used in this research as many as 154 regencies and the cities that has been audited by BPK. Secondary data was used in the study in the form of audit report LGFS and PP 71/2010 as well as the primary data in an interview to the auditor team in BPK that it is processed using a method of content analysis. The research results show that BPK perception of inventory account disclosure is that there are still problems in inventory disclosure carried out by regional governments with different cases. In addition, there were 24 LGFS that had significant inventory value on their total assets including 22 LGFS obtained unqualified opinion and 2 LGFS obtained qualified opinion with an average inventory disclosure of 54.17%, but still get records by examiner regarding administration of inadequate inventories. The disclosure of inventories account in LGFS regencies and cities in Sumatera years 2017 has been good enough with an average of 55,38% with the highest percentage of disclosure in 100,00% and the lowest is 14,29%. In addition, there is no difference in the disclosure of inventories account on LGFS that obtained unqualified opinion and besides unqualified opinion.

scholarly journals ANALISA PERSEPSI MAHASISWA TERHADAP PELAKSANAAN AUDIT PADA OPINI WTP DALAM KAITANNYA DENGAN TANGGUNG JAWAB DAN INDEPENDENSI AUDITOR

2018 ◽  
Vol 13 (02) ◽  
Author(s):  
Siska Cantika Pakambi ◽  
Inggriani Elim ◽  
Sintje Rondonuwu
Keyword(s):  
Data Analysis ◽  
Hypothesis Testing ◽  
Quantitative Method ◽  
Sampling Method ◽  
T Test ◽  
Financial Statement ◽  
Test Analysis ◽  
Purposive Sampling ◽  
Expectation Gap ◽  
The Difference

Expectation gap in auditing is the term used to signify the difference in expectation of wha auditor belived about auditor’s responsibility and what financial statement users belived about auditor’s actual responsibility. This study was aimed at finding out the difference of perception between the students of accounting and students of management on audit implementation on unqualified opinion in relation to responsibility and independence of auditor. This was a study using quantitative method. The population consisted of the eighth semester students of accounting and students of management Departement of S1 Program. The method of sampling used was purposive sampling method. The number of questionnaires distributed was 60 and all of them could be used in this study. The method of analysis for hypothesis testing was Independent Sample T-Test. The tool of data analysis used was SPSS version 23.0 program. Based on the result of Independent Sample T-Test analysis it was found that (1) There is a difference of  perception among the students of accounting and students of management on auditor’s responsibility.(2) There is a difference of  perception among the students of accounting and students of management on auditor’s independence.Keywords: Implementation on Unqualified Opinion, Expectation Gap, Students, Auditor’s Responsibility and Auditor’s independence.

An Application Of The Conceptual Model Of Service Quality To Independent Auditing Services

2010 ◽  
Vol 26 (4) ◽  
Author(s):  
Karen F. Turner ◽  
Carol C. Bienstock ◽  
Ronald O. Reed
Keyword(s):  
Service Quality ◽  
Financial Statement ◽  
Regulatory Agencies ◽  
Font Size ◽  
Quality Model ◽  
The Public ◽  
Expectations Gap ◽  
Expectation Gap ◽  
Australian Education ◽  
Independent Auditing

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt; mso-pagination: none;"><span style="color: black; font-size: 10pt;"><span style="font-family: Times New Roman;">Auditing&rsquo;s expectations gap has been documented over the last 35 years beginning with Liggio (1974) who initially coined and defined the term.<span style="mso-spacerun: yes;">&nbsp; </span>Porter&rsquo;s (1991) and Australian Education Research&rsquo;s (2009) models explored this gap.<span style="mso-spacerun: yes;">&nbsp; </span>However, these models don&rsquo;t recognize the auditors&rsquo; three customer groups: auditees, the public, and regulatory agencies.<span style="mso-spacerun: yes;">&nbsp; </span>Additionally, these models don&rsquo;t consider communication&rsquo;s role between auditors and their customer groups.<span style="mso-spacerun: yes;">&nbsp; </span>The<span style="mso-spacerun: yes;">&nbsp; </span>following discussion applies the service quality model (SERVQUAL) developed by Parasuraman, Zeithaml and Berry (1988 and 1991) to the audit expectation gap and makes recommendations for researching the components, causes, effects of and solutions to the auditing expectations. This model identifies expectation gaps between the service provider (the auditor) and its customers including the auditee, the financial statement user, and the regulatory agencies.<span style="mso-spacerun: yes;">&nbsp; </span>Nyeck, Morales, Ladhari, and Pons (2002, p. 102) concluded in a review article of SERVQUAL research&rdquo;. . .the SERVQUAL model remains the most complete attempt to conceptualize and measure service quality.&rdquo; </span></span></p>

Motivasi dan kepuasan kerja pegawai puskesmas BLUD dan non-BLUD Kabupaten Semarang

2018 ◽  
Vol 2 (3) ◽  
pp. 111
Author(s):  
Aswindar Adhi Gumilang ◽  
Tri Pitara Mahanggoro ◽  
Qurrotul Aini
Keyword(s):  
Public Health ◽  
Job Satisfaction ◽  
Financial Management ◽  
Work Motivation ◽  
P Value ◽  
The Public ◽  
The Status ◽  
The Difference ◽  
Demand For Health ◽  
Public Demand

The public demand for health service professionalism and transparent financial management made some Puskesmas in Semarang regency changed the status of public health center to BLUD. The implementation of Puskesmas BLUD and non-BLUD requires resources that it can work well in order to meet the expectations of the community. The aim of this study is to know the difference of work motivation and job satisfaction of employees in Puskesmas BLUD and non-BLUD. Method of this research is a comparative descriptive with a quantitative approach. The object of this research are work motivation and job satisfaction of employees in Puskesmas BLUD and non-BLUD Semarang regency. This Research showed that Sig value. (P-value) work motivation variable was 0.019 smaller than α value (0.05). It showed that there was a difference of work motivation of employees in Puskemas BLUD and non-BLUD. Sig value (P-value) variable of job satisfaction was 0.020 smaller than α value (0.05). It showed that there was a difference of job satisfaction of BLUD and non-BLUD. The average of non-BLUD employees motivation were 76.59 smaller than the average of BLUD employees were 78.25. The average of job satisfaction of BLUD employees were 129.20 bigger than the average of non-BLUD employee were 124.26. Job satisfaction of employees in Puskesmas BLUD was higher than non-BLUD employees.

Evaluation of the impact of public investment programs on social and economic performance of territories

2019 ◽  
pp. 109-123
Author(s):  
I. E. Limonov ◽  
M. V. Nesena
Keyword(s):  
Bayesian Modeling ◽  
Positive Impact ◽  
Public Investment ◽  
Difference In Differences ◽  
The Public ◽  
Export Activity ◽  
Regional Investment ◽  
The Difference ◽  
The Impact ◽  
Development Institution

The purpose of this study is to evaluate the impact of public investment programs on the socio-economic development of territories. As a case, the federal target programs for the development of regions and investment programs of the financial development institution — Vnesheconombank, designed to solve the problems of regional development are considered. The impact of the public interventions were evaluated by the “difference in differences” method using Bayesian modeling. The results of the evaluation suggest the positive impact of federal target programs on the total factor productivity of regions and on innovation; and that regional investment programs of Vnesheconombank are improving the export activity. All of the investments considered are likely to have contributed to the reduction of unemployment, but their implementation has been accompanied by an increase in social inequality.

Perancangan Boneka Edukasi Terinspirasi oleh Pencipta Boneka Si Unyil

2018 ◽  
Vol 1 ◽  
Author(s):  
Azhari Amri
Keyword(s):  
Design Process ◽  
Urban Culture ◽  
Urban Life ◽  
Rural Region ◽  
The Public ◽  
The Creation ◽  
The Difference ◽  
The City ◽  
Simple Materials

Film Unyil puppet comes not just part of the entertainment world that can be enjoyed by people from the side of the story, music, and dialogue. However, there is more value in it which is a manifestation of the creator that can be absorbed into the charge for the benefit of educating the children of Indonesia to the public at large. The Unyil puppet created by the father of Drs. Suyadi is one of the works that are now widely known by the whole people of Indonesia. The process of creating a puppet Unyil done with simple materials and formation of character especially adapted to the realities of the existing rural region. Through this process, this research leads to the design process is fundamentally educational puppet inspired by the creation of Si Unyil puppet. The difference is the inspiring character created in this study is on the characters that exist in urban life, especially the city of Jakarta. Thus the results of this study are the pattern of how to shape the design of products through the creation of the puppet with the approach of urban culture.

A Proposed Framework Emphasizing Auditor Reliability over Auditor Independence

2003 ◽  
Vol 17 (3) ◽  
pp. 257-266 ◽  
Author(s):  
Mark H. Taylor ◽  
F. Todd DeZoort ◽  
Edward Munn ◽  
Martha Wetterhall Thomas
Keyword(s):  
Public Interest ◽  
Auditor Independence ◽  
Public Confidence ◽  
Sufficient Condition ◽  
Necessary And Sufficient Condition ◽  
Accounting Profession ◽  
The Public ◽  
Necessary And Sufficient

This paper introduces an auditor reliability framework that repositions the role of auditor independence in the accounting profession. The framework is motivated in part by widespread confusion about independence and the auditing profession's continuing problems with managing independence and inspiring public confidence. We use philosophical, theoretical, and professional arguments to argue that the public interest will be best served by reprioritizing professional and ethical objectives to establish reliability in fact and appearance as the cornerstone of the profession, rather than relationship-based independence in fact and appearance. This revised framework requires three foundation elements to control subjectivity in auditors' judgments and decisions: independence, integrity, and expertise. Each element is a necessary but not sufficient condition for maximizing objectivity. Objectivity, in turn, is a necessary and sufficient condition for achieving and maintaining reliability in fact and appearance.

An Examination of Auditors' Reporting Intentions When Another Auditor Is Offered Client Employment

2001 ◽  
Vol 20 (1) ◽  
pp. 45-63 ◽  
Author(s):  
Steven E. Kaplan ◽  
Stacey M. Whitecotton
Keyword(s):  
Personal Responsibility ◽  
Financial Statement ◽  
Accounting Profession ◽  
Personal Costs ◽  
Reporting Intentions

An AICPA ethics ruling prohibits auditors from considering employment with a client during the audit engagement in order to minimize the concerns that financial statement users may have regarding the auditor's independence, in fact or appearance. The objective of this study is to examine auditors' reporting intentions when it is discovered that another auditor is considering employment with the client and has failed to comply with the ethics ruling. We test a model that predicts that auditors' reporting intentions will be influenced by their perceptions of the seriousness of the act, the personal costs of reporting, their responsibility for reporting, and their commitment to the accounting profession. The results indicate that auditors' reporting intentions are stronger when personal costs of reporting are perceived to be lower or personal responsibility for reporting is perceived to be higher. Implications of the findings for audit practice are discussed.

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