Udvidet gennemgang: Har standarden om udvidet gennemgang forstørret forventningskløften og har diskursen heromkring skabt udfordringer?

Rasmus Madsen

Student thesis: Master thesis


This thesis deals with the gap that exists between the financial users and the auditors as there is doubt between what the users expect, what auditing really is, and what the auditor does.
On 10 October 2012 the Minister for Industry and Growth at that time, Ole Sohn, presented a proposal to change the current Danish Act on Approved Auditors and Audit Firms. The proposal aimed at lowering the administrative burden for smaller companies in accounting class B. As the proposal was approved, the Extended Review standard arose and these companies now have the choice between having an audit or an extended review performed.
The interesting aspect here is whether this standard will actually extend the expectation gap. In my analysis, I will identify the expectation gap and its elements. I will try to determine whether this standard contributes to the expectation gap.
In addition to this, it is relevant to investigate the discourse surrounding the introduction of the standard as a whole; whether this has had an effect or not. The governments and the auditors discourse will be investigated.
Furthermore, it is relevant to investigate the similarities and differences between an audit and an extended review, and therefore this is part of the assignment. The audit is, as expected, more thorough and touches upon more wide areas of the client’s bookkeeping material and the financial statements, which is why more evidence is obtained during an audit, and an audit results in a stronger opinion in the Auditor’s Report.
An analysis will be performed throughout and at the end of this thesis as to whether or not the extended review has fulfilled the Government’s plan for this to be integrated as a standard.
It is my conclusion that it seems like the expectation gap has been extended with the implementation of the Extended Review standard.
Furthermore in my discourse analysis I have shown and concluded that the discourse which the auditors in Denmark (FSR) have had and the discourse the Danish government has had on this topic has played a significant role in the lack of success the standard of Extended Review has had.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2016
Number of pages92