Journal of Insurance and Financial Management, 2021
Remarkable corporate scandals of recent all over the world include McKesson and Robbins Fraud, En... more Remarkable corporate scandals of recent all over the world include McKesson and Robbins Fraud, Enron Corporation, WorldCom, Lehman Brothers and Tyco, Waste Management and Health South in the United States of America (USA), Parmalat in Italy, HIH insurance group in Australia, Cameroon Housing Loan Fund (CF) and the National Real Estate Corporation (SIC) in Cameroon. Some stakeholders have wrongly or rightly attributed such corporate failures to audit failures. These differences in perception may either be due to irrational expectations or rational expectations that are not met by the auditors. The study aims to examine whether the audit expectation gap exists in Cameroon amongst stakeholders' groups such as auditors, auditees and intended financial statement users. Questionnaire as an instrument for collecting data through purposive sampling technique, was administered to auditors' group (chartered accountants, audit staff); auditees' group (company managers, audit committee members, members of Board of Directors, company accountants and internal auditors) and financial statement intended users' (Magistrates, State Inspectors, investors, directors in the ministry of finance, taxation inspectors, bankers, student of management, members of the general public, member of Parliament, Lawyers, financial journalists). We performed gap analysis by calculating and comparing means of responses of stakeholders and carrying out a Mann Whitney and Kruskal Wallis Test to ascertain differences exist among groups. Our empirical results show that there exists an irrational expectation gap, a deficient standard gap, a deficient performance gap, a deficient communication gap, a behavior gap and an audit quality gap in Cameroon. We suggest education of all stakeholders and sensitization of the public about the role of auditors, the setting up of appropriate regulatory frameworks and guidelines, and auditors' adherence to the auditing standard as means of curbing the expectation gap.
Journal of Insurance and Financial Management, 2021
Remarkable corporate scandals of recent all over the world include McKesson and Robbins Fraud, En... more Remarkable corporate scandals of recent all over the world include McKesson and Robbins Fraud, Enron Corporation, WorldCom, Lehman Brothers and Tyco, Waste Management and Health South in the United States of America (USA), Parmalat in Italy, HIH insurance group in Australia, Cameroon Housing Loan Fund (CF) and the National Real Estate Corporation (SIC) in Cameroon. Some stakeholders have wrongly or rightly attributed such corporate failures to audit failures. These differences in perception may either be due to irrational expectations or rational expectations that are not met by the auditors. The study aims to examine whether the audit expectation gap exists in Cameroon amongst stakeholders' groups such as auditors, auditees and intended financial statement users. Questionnaire as an instrument for collecting data through purposive sampling technique, was administered to auditors' group (chartered accountants, audit staff); auditees' group (company managers, audit committee members, members of Board of Directors, company accountants and internal auditors) and financial statement intended users' (Magistrates, State Inspectors, investors, directors in the ministry of finance, taxation inspectors, bankers, student of management, members of the general public, member of Parliament, Lawyers, financial journalists). We performed gap analysis by calculating and comparing means of responses of stakeholders and carrying out a Mann Whitney and Kruskal Wallis Test to ascertain differences exist among groups. Our empirical results show that there exists an irrational expectation gap, a deficient standard gap, a deficient performance gap, a deficient communication gap, a behavior gap and an audit quality gap in Cameroon. We suggest education of all stakeholders and sensitization of the public about the role of auditors, the setting up of appropriate regulatory frameworks and guidelines, and auditors' adherence to the auditing standard as means of curbing the expectation gap.
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Papers by Alfred Wambang