There is considerable evidence of the existence of audit expectation gap between auditors and the... more There is considerable evidence of the existence of audit expectation gap between auditors and the public in Sweden. However, conflicting views exist regarding the role of audit education in narrowi ...
This study examines how a paradigm shift from traditional to digital audits could affect the audi... more This study examines how a paradigm shift from traditional to digital audits could affect the audit expectation gap. It uncovers possible new areas of the expectation gap and threats and challenges resulting from this paradigm shift. The findings suggest that audit digitalization will result in the audit profession transitioning from the defensive approach of educating users on auditors’ duties to a constructive approach of using digital tools to perform some of the duties that users expect of auditors. Specifically, digital technologies have the potential to enhance internal controls and facilitate fraud prevention and detection, thus narrowing the expectation gap in relation to these critical issues. It may further accelerate the elimination of future challenges and threats and the narrowing of future expectation gaps. The potential benefits of switching to the constructive approach are lower costs for audit firms, enhanced audit quality, and improved client perceptions of auditors.
Journal of Emerging Technologies in Accounting, 2021
This study examines the future impact of digitalisation on auditing by synthesising empirical stu... more This study examines the future impact of digitalisation on auditing by synthesising empirical studies, relating them to surveys conducted by accounting bodies, and analysing these findings in relation to extant literature. Based on the synthesis, this study proposes a transitional framework to enable the audit profession to remain competitive. The results show that digitalisation may significantly affect the audit profession in the future. However, the impact is likely to be incremental rather than radical. To remain competitive, the audit profession needs to adopt new metrics, capabilities, skills and evolve its business models to incorporate digital technologies. The contribution of this study is multi-faceted. The propositions and research agenda presented in this study will be beneficial to academics, practitioners, audit regulators, and the general public as they have the potential to form a foundation for addressing future research questions and for the theorisation and empir...
Purpose This study aims to identify the determinants of the expectation gap between financial sta... more Purpose This study aims to identify the determinants of the expectation gap between financial statement users (investors and bankers) and auditors from a developing country perspective with Cameroon as the case study. Design/methodology/approach This study makes use of the survey instrument to identify the determinants of the expectation gap in Cameroon. The research method and research design used for this study are similar to that adopted in Schelluch, Best et al., Fadzly and Ahmed, Desira and Baldacchino and Dixon et al. Findings The results indicate that audits and audited financial statements and auditors’ skills are good predictors of the audit expectation gap (AEG), whereas gender, years of experience and occupation (investors and accountants) do not have any significant influence on the AEG. It follows that the expectation gap is further widened by an increase in the regulation and duties of auditors concerning the reliability and usefulness of audits and audited financial s...
This study examines the reaction of stock returns to acquisition news. A data of 51 observations ... more This study examines the reaction of stock returns to acquisition news. A data of 51 observations of acquiring companies with publicly traded shares on the London Stock Exchange (FTSE100) is used over a period, from July 2012 to May 2013 with an estimation period [-100, -10] and test period [-5, +5]. The market model is applied here in order to predict future stock returns and the use of the simple regression to get the parameters of the regression equation. With this a test statistics obtained on average, is significantly positive and greater than the critical value. Therefore, the event of acquisition does appear to be related significantly to the abnormal returns and the null hypothesis being rejected.
There is considerable evidence of the existence of audit expectation gap between auditors and the... more There is considerable evidence of the existence of audit expectation gap between auditors and the public in Sweden. However, conflicting views exist regarding the role of audit education in narrowi ...
This study examines how a paradigm shift from traditional to digital audits could affect the audi... more This study examines how a paradigm shift from traditional to digital audits could affect the audit expectation gap. It uncovers possible new areas of the expectation gap and threats and challenges resulting from this paradigm shift. The findings suggest that audit digitalization will result in the audit profession transitioning from the defensive approach of educating users on auditors’ duties to a constructive approach of using digital tools to perform some of the duties that users expect of auditors. Specifically, digital technologies have the potential to enhance internal controls and facilitate fraud prevention and detection, thus narrowing the expectation gap in relation to these critical issues. It may further accelerate the elimination of future challenges and threats and the narrowing of future expectation gaps. The potential benefits of switching to the constructive approach are lower costs for audit firms, enhanced audit quality, and improved client perceptions of auditors.
Journal of Emerging Technologies in Accounting, 2021
This study examines the future impact of digitalisation on auditing by synthesising empirical stu... more This study examines the future impact of digitalisation on auditing by synthesising empirical studies, relating them to surveys conducted by accounting bodies, and analysing these findings in relation to extant literature. Based on the synthesis, this study proposes a transitional framework to enable the audit profession to remain competitive. The results show that digitalisation may significantly affect the audit profession in the future. However, the impact is likely to be incremental rather than radical. To remain competitive, the audit profession needs to adopt new metrics, capabilities, skills and evolve its business models to incorporate digital technologies. The contribution of this study is multi-faceted. The propositions and research agenda presented in this study will be beneficial to academics, practitioners, audit regulators, and the general public as they have the potential to form a foundation for addressing future research questions and for the theorisation and empir...
Purpose This study aims to identify the determinants of the expectation gap between financial sta... more Purpose This study aims to identify the determinants of the expectation gap between financial statement users (investors and bankers) and auditors from a developing country perspective with Cameroon as the case study. Design/methodology/approach This study makes use of the survey instrument to identify the determinants of the expectation gap in Cameroon. The research method and research design used for this study are similar to that adopted in Schelluch, Best et al., Fadzly and Ahmed, Desira and Baldacchino and Dixon et al. Findings The results indicate that audits and audited financial statements and auditors’ skills are good predictors of the audit expectation gap (AEG), whereas gender, years of experience and occupation (investors and accountants) do not have any significant influence on the AEG. It follows that the expectation gap is further widened by an increase in the regulation and duties of auditors concerning the reliability and usefulness of audits and audited financial s...
This study examines the reaction of stock returns to acquisition news. A data of 51 observations ... more This study examines the reaction of stock returns to acquisition news. A data of 51 observations of acquiring companies with publicly traded shares on the London Stock Exchange (FTSE100) is used over a period, from July 2012 to May 2013 with an estimation period [-100, -10] and test period [-5, +5]. The market model is applied here in order to predict future stock returns and the use of the simple regression to get the parameters of the regression equation. With this a test statistics obtained on average, is significantly positive and greater than the critical value. Therefore, the event of acquisition does appear to be related significantly to the abnormal returns and the null hypothesis being rejected.
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Papers by Fotoh Elad