ABSTRACT
This study focuses on the cause-and-effect factors that drive audit expectation gap on
stakeholder’s confidence. The main purpose of the study was to establish the factors affecting
audit expectation gap on stakeholder’s confidence in Selangor. Specifically, the study sought
to establish the influence of auditors’ responsibility for fraud detection (ARF), meaning &
usefulness of audit report (MUAR), provision of non-audit services (NAS), expectation for
going concern reporting assessment (GCR), expectation for other assurance services (EOA).
This study will help us and the reader to understand the factor that affecting audit expectation
gap on stakeholder’s confidence. The study adopted a descriptive design. The study
population comprised of all the auditors who worked at audit firm in Selangor. The target
population was all the 50 auditors in Selangor. The study used primary data collected using a
structured questionnaire. The questionnaire was adapted and adopted from previous
researcher which is Taslima Akther & Fengju Xu (2020). The data was analysed using the
Statistical Package for Social Sciences (version 26) software and Microsoft Excel (version
2019). The data analysis consisted of both descriptive and inferential statistics. Descriptive
statistics included frequencies and percentages while the inferential statistics included a
multiple linear regression analysis. The results were presented in form of tables and figures.
The study concluded that meaning & usefulness of audit report (MUAR), provision of nonaudit services (NAS) and expectation for going concern reporting assessment (GCR)
influenced the audit expectation gap on stakeholder’s confidence in Selangor. The study also
concluded that auditors’ responsibility for fraud detection (ARF) and expectation for other
assurance services (EOA) did not give a major influence towards audit expectation gap on
stakeholder’s confidence in Selangor. The researcher suggests that a similar study can be
conducted in another area that is outside Selangor for comparison purposes.
Keywords: audit expectation gap, stakeholder confidence, fraud detection, audit report, nonaudit services, going concern reporting, other assurance services