AUDIT EXPECTATION GAP IN THE PUBLIC SECTOR IN ROMANIA

Abstract

Theme – It is know that the large public and auditors hold different beliefs about the auditors’ duties and responsibilities. In this conditions audit expectation gap represents that level of expectation that remains uncovered. In this study paper, audit expectation gap represents the difference between the achievements of public auditors and the expectations that general public (students) have beyond those responsibility. Purpose – The evolution of audit expectation gap has been examined in various countries, but the extent of the concept has not been investigated so much in public area. This study attempts to assess the perceptions of possible future auditors, students, regarding the existence of expectation gap in public area. Literature review – A review of the literature identifies many researches who define the concept since was given the first definition of audit expectation gap as the difference between the levels of expected performance and the results that auditors give, but just a few analysis the public area using students’ knowledge to understand the perception of future users of accounting information or potential bidders of accounting information. Methodology – This paper represents the beginning of a broader study that will be part of the doctoral thesis entitled “Organization and exercise of public audit in Romania”, started in 2009 at University Babes Bolyai from Cluj Napoca, coordinated by PhD Professor Matis Dumitru. The aim of this paper is to explore the findings of an empirical study, made on 352 students, were the primary data used were obtained through a questionnaire technique regarding the audit expectation gap in the public sector in Romania, looking into future to obtain responses using a larger respondent group. Findings – A reasonableness gap was uncovered, there is a gap between the expectation of students regarding the public auditors' profession and their results and there are differences between level of knowledge of the students regarding the statements in audit and the expectation gap. Also there is a significant difference in perceptions of the role of the public auditor in respect of fraud detection. The research will be extended to other users of accounting information (accountants, executives, managers, bankers) to see their understanding of the role of external public auditors, this we consider Originality/value – This paper adds evidence to the important debate about expectation gap from a region that has had little coverage. In Romania are just a few information regarding the importance of education in reducing the audit expectation gap in public area. We try to draw attention in two sectors that are left one side, education and public domain. A correlation between these two, in the context of audit expectation gap will give some answers absolutely necessary.

Keywords

• audit, audit expectation gap, expected performance, education.