The ‘Knowledge Gap’ and ‘Deficient Performance Gap’ between Auditors and Corporate Managers: An Empirical Study in Malaysia

This paper reports the findings of a questionnaire survey of “knowledge gap” and “deficient performance gap” conducted in Malaysia on auditors and corporate managers. A total of 47 auditors and 72 corporate managers in Klang Valley responded to the survey. The aims of the study are two folds. Firstly, it ascertains the knowledge of the auditors and corporate managers of the auditors’ duties as required by the Malaysian Companies Act 1965 and the Malaysian Approved Standards on Auditing. Secondly, it elicits the perceived performance of auditors in relation to these required duties. The results of the study indicate the existence of “knowledge gap” and “deficient performance gap” between auditors and corporate managers. Overall, the results indicate that: (1) the auditors in Malaysia are knowledgeable about their duties and (2) the corporate managers have limited knowledge of auditors’ duties and they are less satisfied with some of the duties performed by the auditors

Development of auditing in Malaysia: legal, political and historical influences

This work investigates the role and contribution of external auditing as practised in the Malaysian society during the forty year period from independence in 1957 to just before the onset of the Asian Financial Crisis in 1997. It applies the political economic theory introduced by Tinker (1980) and refined by Cooper & Sherer (1984), which focuses on the social relations aspects of professional activity rather than economic forces alone. In a case study format where qualitative data was gathered mainly from primary and secondary source materials, the study found that the function of auditing in the Malaysian society in most cases is devoid of any essence of mission; instead it is created, shaped and transformed by the pressures which give rise to its development over time. The largely insignificant role that it serves is intertwined within the contexts in which it operates.external audit; Malaysia; politics; history; economy; Companies Act 1965; Companies Act 1985; British Companies Acts; Accountants Act 1967; Asian Financial Crisis

Entrepreneurial Inclination Among Business Students: a Malaysian Study

Entrepreneurship has been the fundamental topics of discussion among the politicians, economists, and academics. Business creation is especially critical in developing countries to stimulate economic growth. The present study attempts to examine entrepreneurial inclination among students who are a potential source of entrepreneurs. The fi ndings of the present research study indicate that majority of our business students are not entrepreneurial-inclined. They do not seem to possess strong entrepreneurial characteristics and entrepreneurial skills, and they are not keen in starting a new business. The roles of higher institutes of education and the government in promoting entrepreneurship are discussed

Development of auditing in Malaysia: legal, political and historical influences

This work investigates the role and contribution of external auditing as practised in the Malaysian society during the forty year period from independence in 1957 to just before the onset of the Asian Financial Crisis in 1997. It applies the political economic theory introduced by Tinker (1980) and refined by Cooper & Sherer (1984), which focuses on the social relations aspects of professional activity rather than economic forces alone. In a case study format where qualitative data was gathered mainly from primary and secondary source materials, the study found that the function of auditing in the Malaysian society in most cases is devoid of any essence of mission; instead it is created, shaped and transformed by the pressures which give rise to its development over time. The largely insignificant role that it serves is intertwined within the contexts in which it operates

Practical training and the audit expectations gap: The case of accounting undergraduates of Universiti Utara Malaysia

The accounting profession has long faced the issue of an audit expectations gap; being the gap between the quality of the profession’s performance, its objectives and results, and that which the society expects. The profession believes that the gap could be reduced over time through education. Studies have been carried out overseas and in Malaysia to determine the effect of education in narrowing the audit expectations gap. Extending the knowledge acquired, this paper investigates whether academic internship programs could reduce the audit expectations gap in Malaysia. Using a pre-post method, the research instrument adapted from Ferguson et al. (2000) is administered to the Universiti Utara Malaysia’s accounting students at the beginning and end of their internship program. The results show there is a significant change in perceptions among students after the internship program. However, changes in perceptions do not warrant an internship program as a means of reducing the audit expectations gap as misperceptions are still found among respondents on issues of auditing after the completion of the internship program. Nevertheless, an internship program can still be used to complement audit education in a university as it is an ideal way to expose students to professional issues and enables them to have a better insight of the actual performance and duties of auditors

Practical training and the audit expectations gap: The case of accounting undergraduates of Universiti Utara Malaysia

The accounting profession has long faced the issue of an audit expectations gap; being the gap between the quality of the profession’s performance, its objectives and results, and that which the society expects. The profession believes that the gap could be reduced over time through education. Studies have been carried out overseas and in Malaysia to determine the effect of education in narrowing the audit expectations gap. Extending the knowledge acquired, this paper investigates whether academic internship programs could reduce the audit expectations gap in Malaysia. Using a pre-post method, the research instrument adapted from Ferguson et al. (2000) is administered to the Universiti Utara Malaysia’s accounting students at the beginning and end of their internship program. The results show there is a significant change in perceptions among students after the internship program. However, changes in perceptions do not warrant an internship program as a means of reducing the audit expectations gap as misperceptions are still found among respondents on issues of auditing after the completion of the internship program. Nevertheless, an internship program can still be used to complement audit education in a university as it is an ideal way to expose students to professional issues and enables them to have a better insight of the actual performance and duties of auditors

Practical training and the audit expectations gap: The case of accounting undergraduates of Universiti Utara Malaysia

The accounting profession has long faced the issue of an audit expectations gap; being the gap between the quality of the profession’s performance, its objectives and results, and that which the society expects. The profession believes that the gap could be reduced over time through education. Studies have been carried out overseas and in Malaysia to determine the effect of education in narrowing the audit expectations gap. Extending the knowledge acquired, this paper investigates whether academic internship programs could reduce the audit expectations gap in Malaysia. Using a pre-post method, the research instrument adapted from Ferguson et al. (2000) is administered to the Universiti Utara Malaysia’s accounting students at the beginning and end of their internship program. The results show there is a significant change in perceptions among students after the internship program. However, changes in perceptions do not warrant an internship program as a means of reducing the audit expectations gap as misperceptions are still found among respondents on issues of auditing after the completion of the internship program. Nevertheless, an internship program can still be used to complement audit education in a university as it is an ideal way to expose students to professional issues and enables them to have a better insight of the actual performance and duties of auditors

Audit specialisation in Malaysia

By applying audit firm industry market share measure as proxy for audit firm industry expertise or specialisation, the focus in this study is on trends in industry specialisation from 1999 to 2002. With data coming from annual reports of companies listed at the Kuala Lumpur Stock Exchange (KLSE – now, Bursa Malaysia) and industry specialists defined as market leaders with market share greater than 20 percent of audit services (in terms of the number of clients) within a client specific industry, it is found that Ernst and Young specialising in construction and plantation, KPMG in industrial products, PricewaterhouseCoopers in finance and Arthur Andersen in finance,plantation, technology and trading/services

Practical training and the audit expectations gap: The case of accounting undergraduates of Universiti Utara Malaysia

The accounting profession has long faced the issue of an audit expectation gap; being the gap between the quality of the profession’s performance, its objectives and results, and that which the society expects.The profession believes that the gap could be reduced over time through education.Studies have been carried out overseas and in Malaysia to determine the effect of education in narrowing the audit expectation gap. Extending the knowledge acquired, this paper investigates whether academic internship programs could reduce the audit expectation gap in Malaysia.Using a pre-post method, the research instrument adapted from Ferguson et al.(2000) is administered to the Universiti Utara Malaysia’s accounting students at the beginning and end of their internship program.The results show there is a significant change in perceptions among students after the internship program. However, changes in perceptions do not warrant an internship program as a means of reducing the audit expectation gap as misperceptions are still found among respondents on issues of auditing after the completion of the internship program. Nevertheless, an internship program can still be used to complement audit education in a university as it is an ideal way to expose students to professional issues and enables them to have a better insight of the actual performance and duties of auditors

Development of auditing in Malaysia: Legal, political and historical influences

This work investigates the role and contribution of external auditing as practised in the Malaysian society during the forty year period from independence in 1957 to just before the onset of the Asian Financial Crisis in 1997.It applies the political economic theory introduced by Tinker (1980) and refined by Cooper & Sherer (1984), which focuses on the social relations aspects of professional activity rather than economic forces alone.In a case study format where qualitative data was gathered mainly from primary and secondary source materials, the study found that the function of auditing in the Malaysian society in most cases is devoid of any essence of mission; instead it is created, shaped and transformed by the pressures which give rise to its development over time.The largely insignificant role that it serves is intertwined within the contexts in which it operates