Document Type : Research Paper
Authors
1 Assistant Professor of Accounting, Razi University, Kermanshah, Iran
2 M.A in Accounting, Razi University,Lermanshah,Iran
3 Associate Professor of Accounting Razi Univercity, University of Kermanshah, Kermanshah, Iran
4 M,A in Accounting, Razi University of Kermanshah, Kermanshah, Iran
Abstract
The purpose of this study was to investigate the relationship between the audit expectation gap and investor confidence, also to investigate the role of the auditor’s improved level of communication on this relationship. To investigate this effect and a model with higher order constructs using a partial least-squares structural equation model (PLS-SEM), has been used. Based on a questionnaire survey with auditors and institutional investors, as one of the main users of audited financial statements, this study explored investors’ perceptions of both unreasonable and sensible audit expectation gaps (auditing performance and auditing standard gap) and the impact of auditor’s improved level of communication on this assessment. Based on the findings and values related to the path coefficients, audit quality and ensuring audit education have had a significant and positive effect on investor confidence. Also, a significant and negative relationship has been seen between the performance gap and the unreasonable audit gap with the level of investor confidence. Another finding of this study was the significant and positive effect of auditor’s improved level of communication on the relationship between the audit performance gap and the unreasonable audit gap with the level of investor confidence. Also, the calculation and analysis of fitness indicators using Smart-PLS software has confirmed the conformity of the conceptual framework and the experimental background with the results.
Keywords
- Investor Confidence
- Aauditor&rsquo
- s Improved Level of Communication
- Auditing Performance Gap
- Auditing Standard Gap
- Unreasonable Audit Gap
Main Subjects
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