Evaluation of Audit Expectation Gap in Sudan: Existence, Causes, and Subsequent Effects

Abstract

Purpose: This study mainly focus on evaluating the existence, causes and subsequent effects of audit expectation gap in Sudan.

Proposed Design/Methodology/Approach: A cross sectional research design in which data to be collected through structured questionnaires, and semi-structured interviews. Partial Least Square Path Modeling, using Smart PLS Software to analyze the data.

Findings: A detailed literature review reveals that, there is a shortage of research concerning the impact of multi-responsibility auditor, standard external audit process, accounting and auditing regulations in a developing country, auditor independence in fact and in appearance, external audit rotation, and rendering of non-audit services on audit expectation gap.

Moreover, there is dearth of studies investigating the moderating role of professional code of ethics, and the mediating effect of audit report .Therefore, the study proposes a framework to incorporate these factors into future research.

Practical Implications: The results of this study will assist policy makers in finding ways that can be instituted to tackle expectation gap in Sudan, to improve the quality of the auditing profession in the country.

Originality/value: This study contributes to the existing literature by adding evidence to the important debate about audit expectation gap, from a region that had little coverage on the studied matter. Specifically, it proposes a framework to extend the research on the factors that cause such a gap in Sudan. Moreover, a significant feature of this study is in introducing accounting and auditing regulations in a developing country as a new variable to investigate its effects on audit expectation gap.