Abstract:

This study discusses about the existence of audit expectation gap in Pakistan. A survey was conducted across professionals and non professionals from the field of accounting in various cities of Pakistan.245 questionnaires were sent and results were evaluated. Issues of audit responsibility, audit reliability and decision usefulness of audited financial statements were covered in the questionnaire. The response from both professionals and non professionals was compared and results were evaluated. The result depicted that a wide audit expectation gap is found in Pakistan in the area of judgment of auditor in the selection of audit procedure and the indication of assurance given by the auditors in the report. The perception of students differs when they become auditors. Thus the study indicates that there is a need to equip students and users of financial statements with the right knowledge so that their perceptions remain the same regarding the profession of auditing.