ASSESSMENT OF AUDIT EXPECTATION GAP IN NIGERIA

ABSTRACT: This study was carried out to examine the assessment of audit expectation gap in Nigeria using ICAN Lagos state as the case study. Specifically, the study aimed at ascertaining the responsibility and reliability factors which contribute to the audit expectation gap problem in Nigeria; ascertain the perception of auditors who are ICAN MEMBERS in Nigeria as to the suggestions for bridging the expectation gap; identify the opinion of auditors and audit beneficiaries on the statutory role of external auditors in Nigeria; investigate the nature of Audit Expectation Gap and users of financial statement in Nigeria; understand the perceptions of auditor and users regarding the auditing roles and functions in Nigeria; determine the role played by Auditor with respect to audit profession; and suggest and provides recommendation to improve and enhances auditing professions. The study employed the survey descriptive research design. A total of 50 responses were validated from the survey. From the responses obtained and analysed, the findings revealed that there is a significant relationship between audit expectation gap and auditor responsibility relating to fraud detection and prevention, and soundness of internal control structure of the audited entity. Furthermore, there is a significance difference between the opinion of auditors and audit beneficiaries on the statutory role of external auditors in Nigeria. The study recommend auditors are encouraged to exercise due care and diligence in handling the accounts of a company. This is because failure to do so may abruptly end the business and increase the blame on the accounting profession. More so, users of audited financial statements are encouraged to seek professional advice before investing in a company. This will further assure them of the safety of their investment than merely interpreting that an unqualified audit report is a clean bill of health of the company.