An Investigation of Audit Expectation Gap in Bangladesh

Taslima Akther, Xu Fengju, Md Ziaul Haque


Massive Global corporate scandals, financial crisis and collapses of large entities have diluted the  investors’ confidence in the worlds capital market The auditing profession has also come under the spotlight, following the melodramatic flop of eminent companies without any prior warning signals and  highlighted the miracle phenomena, the audit expectation gap (AEG). Based on a questionnaire survey with auditors and investors, this paper discovers significant audit expectation gap (AEG) in the areas of auditor’s general responsibility, auditor’s responsibility for fraud detection, auditor’s responsibility for internal control reporting assessment,  meaning of the audit report,  and also auditor’s responsibility for going concern reporting in Bangladesh. No expectation gap is emerged regarding the usefulness of audit report. Most of the gap has been refereed as reasonableness gap, but it can lead the standard setters and the practitioners of audit profession to set higher standards of performance.



Audit expectation gap (AEG), reasonableness gap, Bangladesh

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This work is licensed under a Creative Commons Attribution 4.0 International License.