The audit expectation gap in New Zealand

As a socially-embedded service provider, it is essential that the users of audit services, as well as the wider public, have confidence in the audit profession. The confidence appears to be eroding, with a gap appearing between user expectations and the services provided. This has been termed the ‘audit expectation gap’ (the ‘gap’). This study seeks to update the literature as to the gap’s existence in New Zealand, and explore the possibility of education of users helping to reduce the gap. Samples of auditors and directors throughout New Zealand were surveyed as to what duties they believe are currently included within the audit function, and what duties should be included in the audit function. The director sample were also surveyed as to whether they had any audit- or accounting-related education, or experience. Responses were analysed using non-parametric tests; specifically, chi-square cross tabulation tests. 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