The Audit Expectation Gap’s Narrowing Of CPA’s Auditing In Our Country

Separation of powers of the socio-economic environment prompted the audit emerging and the different auditing environment indirectly promoted the audit approach, the auditor liability and audit objectives. In the development of the audit profession, due to the different understanding of the audit nature and the evaluation of the audit work between information users and CPAs and the applicability of auditing standards should be strengthened, audit expectation gap gradually highlights, having different size and manifestations in the different stages of social development. Throughout China’s market environment, although there is no "litigation explosion" situation, but accompanied by a series of CPAs frequent failure cases, that our auditors were sued in the case which has also been a corresponding surge. It also led to the situation that our audit expectation gap gradually became dominant, so the public had to bring the appropriate attention. In the view of this, on the basis of related concepts about audit expectation gap and the outstanding achievements of Western narrowing the audit expectation gap, as well as combining with China’s actual situation, this essay tries to find our audit expectation gap narrowing measures.In the research ideas,this paper firstly explain the audit expectation gap in knowledge and then analyzes the reasons why the gap appeared in our country, followed by the introduction of foreign narrowing gap experience. Finally, the paper puts forward measures for narrowing our audit expectation gap. In the research methods, one method is comparative analysis, this paper uses the public documents, selects one of the useful information, then compares them, finally gets the conclusion; the other method is literature data analysis, in the process of writing and drawing a lot of retrieving literature has been accumulated.The basic framework of this paper is as follows:The first part:Introduction. This part mainly includes the research background and significance of this article, the domestic and foreign literature review, the research methods and the frame.The second part:Theories of audit expectation gap. Firstly, the author narrates the related concepts of audit expectation gap, and gets the meanings about the gap based on a comprehensive study of domestic and foreign scholars in this regard; Then, this chapter also describes three elements of the audit expectation gap which includes performance gap, the cognition gap and guidelines recognize gap; Finally, the chapter presents three basic theories of the audit expectation gap, including fiduciary duty theory, information theory and the theory of insurance, laying a compacted theoretical basis for the full text.The third par:System development, the specific performance and outstanding issues of China’s audit expectation gap. This chapter firstly introduces system development of the audit expectation gap in the chronological order; Secondly, this chapter illustrates the specific performance from four levels so that the gap can be more refined; Finally, this chapter will put the audit expectation gap into the actual situation of China’s economic development and analyze some of the constraints to improve the audit expectation gap based on the five aspects.The fourth part:Analysis of the reasons for the audit expectation gap. In this chapter, the author mainly from three aspects involved in the audit expected to expand the statement. Firstly, it can be found that auditors are not good to play their roles; Secondly, publics also have much wrong concept about audit work; Finally, auditing standards have many areas to be improved, which is very important to the audit expectation gap.The fifth part:Foreign methods about the audit expectation gap for reference. In this chapter, the author describes many efforts made by the United States in dealing with the audit expectation gap, which provides much information and reference for dealing with our audit expectation gap.The sixth part:The measures of narrowing the audit expectation gap. This chapter is the core of the full text. It proposes measures to improve our audit expectation gap from the five aspects, which is based on previous content.The main conclusions of this paper are as follows:(1)This paper has got the summary and commentary about the narrowing measures between abroad and our country, which lays a corresponding theoretical foundation for next content.(2) This paper clears the evolution of the audit expectation gap in our country on the basis of the background of our country’s economy and summarizes the particularity of our country.(3) This paper has found some feasible measures for narrowing gap based on the guard of abroad and our national conditions, which has much practical significance.