Investigating the Audit Expectation Gap between External Auditors and Users of Auditing Services

Using an analytical framework on the factors affecting the quality of audit services, the factors affecting the expectation gap between audit services providers and users with regard to the factors affecting audit quality were investigated in professional environment of Iran in this study. The factors investigated within the professional people’s expectation gap were the professional features including people’s professional role in the audit process (Auditors versus preparers of financial statements), people’s professional experience, and audit firms’ professional ranking and size. The first statistical population consisted of certified public accountants working in audit organization of Iran and audit firms, and the second one comprised all investment companies which function under the supervision of Tehran Stock Exchange. Based on the results, the role of professionals in the audit process as independent auditors or providers of financial statements as well as people’s professional experience did not affect expectation gap of audit quality. However, the size of the audit firms and the professional ranking of them have influenced on the expectation gap of the professionals participating in this study about the impact of audit regulation on audit quality.