The purpose of this thesis is to clarify the issue of the existence of the comprehensibility and expectancy gap between the auditors and credit employees. The auditor’s primary task is to ensure the credibility of the company’s accounts. Credibility creates confidence among users of financial statements. The issue dealt within the thesis is based on the theory about the existence of the expectancy and comprehensibility gap between the auditor and credit employees, and parallels are drawn to the way the auditor communicates his/her conclusions in this regard in the audit report to the financial statement user. The issue is defined by the way of a general presentation motivating and specifying the choice of issue resulting the following problem: Is there a comprehension and expectancy gap between users' expectations of the auditor's work and how can you reduce the expectation gap between them? In order to answer the above problem, I have listed sub-questions ending with two hypotheses. The purpose of which is to form a basis upon which to analyse the theory, combined with empirical data. The questionnaire has been presented to a group of credit employees and credit bosses in Danish banks. This group was targeted, because they are regarded among the most important users of the annual reports. The survey is complimented by a deeper E-mail survey distributed to credit bosses. Building up the results of the survey and the key points in the deeper E-mail survey – an evolution is carried out, regarding the following subjects: the lack of understanding the auditors report and responsibility for the financial reporting. To examine this problem, different types of analytic models and methods are to be included. I used Brenda Porters theory and Bent Warming Rasmussen. Both are well knows theorist. 4 The respondents in my survey believe that their understanding is sufficient or good, but the results indicate that this is not the case – since the respondents seem to have grave deficiencies in their understanding of the auditor’s report. Moreover, most of the credit employees do not always use the auditors reporting in their judgement.
|Educations||MSc in Auditing, (Graduate Programme) Final Thesis|
|Number of pages||105|