Auditors and Auditing Process in Yemen within the Context of Audit Expectation Gap

Abstract

This study investigates the audit expectation gap in Yemen. While this issue has been examined elsewhere, the extent of such gap has never been investigated in Yemen, where there are no accounting and auditing standards in practice.  A survey research was conducted on a sample of 288 auditors and users of financial statements. Of the 288 questionnaires distributed, 75.69% were returned and analyzed.  The results suggest the existence of a wide audit expectation gap between the two groups, with respect to auditing process. Hence, it is suggested that in order to improve the degree of accounting profession and auditing practices in Yemen, authorities may consider adopting and adapting accounting and auditing standards that are suitable to the country's business environment. These standards will provide guidance and rules for all related parties which have interest and concern in the accounting and auditing profession. This study adds evidence to the important debate about audit expectation gap from a region that is relatively under researched.