Performance gap

Performance gap

Performance: gap between what an auditor can reasonably be expected to accomplish and the auditor’s actual performance as perceived by the users (Porter, 1993).

Reasonable expectations add insignificant additional cost to auditors

• Deficiency in standards: standards do not fulfil reasonable user expectations regarding auditor responsibilities).

  • Example: standards do not require auditors to report on any doubts they may have regarding the ability of an entity to continue as a going concern (Porter et al., 2012).

• Deficiency in auditors performance: auditor to not fulfil their responsibilities as required by standards.

  • Example: auditor fails to properly plan and perform the audit.

In the next step we will be looking at Ruhnke andSchmidt’s take on the AEG.