AUDITOR’S INDEPENDENCY AND RESPONSIBILITY: EXPECTATION GAP BETWEEN AUDITOR AND USER’S PERCEPTION (CASE STUDY IN RSM INDONESIA)

Abstract

The purpose of this study was to determine whether the audit expectation gap between auditors and user in RSM Indonesia did exist. In some ways, public and other users of the financial statements expect of the auditor is not necessarily the same as the law requires of him, or that which is realistically possible. The independent and responsibility factor is the foundation of the public accounting profession. Author has performed a qualitative study consisting of interviews with representatives from auditor and user. The conclusions are based on the interviewees’ personal opinion, observation and based on literature review. However author believe author have discovered certain important negative tendencies The author comes to the conclusion that this kind of gap did exist between auditor and user. Their different perceptions about responsibility and independency of auditor are the key element of expectation gap in this research. The result shows that the expectation gap did exist because of different concept from auditor ad user’s perceptions. Other causes of expectation gap are misunderstanding from client about independency and responsibility and lack of implementation in independency from client. The expectation gap should be reduced by the auditor by improving audit responsibilities, educating various users, and mandating new standards and the user by reducing the expectation and increasing knowledge about auditing. Due to these causes auditors are not able to produce a fair report. Therefore the auditor and user should understand each other’s responsibility and independency.