The Resolution of Audit-Detected Misstatements

Transforming Perceptions: The Development of Pre-pack Regulations in England and Wales

“…208 The second factor is the failure of the auditors themselves to understand what the laws and guidelines require of them, as well as their failure to perform to the required standards. 209 These contribute to the deficient performance gap. Several studies have shown the discrepancies amongst auditors on the nature of their role.…”

“…210 The third is the failure of the law and standard setters to set out clear and consistent standards, to communicate auditors' responsibilities unambiguously and to reflect the public's reasonable expectations of audit standards. 211 These failures contribute to the expectation and performance gaps, as well as deficient standards and performance.…”

“…218 In addition, Ruhnke and Schmidt advocate better training for auditors, with more oversight of misconduct, as well as the removal of ambiguities from audit standards. 219 Collectively, these strategies would ensure that the public develop expectations that are consistent with the role, duties and responsibilities of auditors and that auditors are enjoined to execute their functions better. Their combined effect would be a reduction in the reasonableness and deficient performance gaps.…”