The focus point of the audit expectation gap in the Republic of South Africa

The audit expectation gap has been the subject of many research projects in overseas countries. Recommendations and strategies for narrowing the gap in these countries have been based on empirical data. In the Republic of South Africa (South Africa), however, no empirical data has so far been gathered. This paper presents the findings of an empirical investigation in South Africa in which perceptions and opinions of financially knowledgeable persons regarding the audit function were compared to those of auditors. The development of the phenomenon, contributing factors, as well as methods of narrowing the gap are described as a background against which the expectation gap should be seen. Key words Accountability, audit appointment, audit expectation gap, audit of small owner-managed companies, auditing profession, auditor, auditor's independence, generally accepted auditing standards, reporting process, role of the auditor, statements on auditing standards