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Based on the studies by Schelluch and Best et al., this study aims to investigate the existence of an audit expectation gap in Malaysia. The main motivation comes from the lack of research on the issue since the Enron and Andersen debacles. Besides, the Malaysian accounting environment has significantly improved since the 1998s reform, with the passing of the Financial Reporting Act and the establishment of the Malaysian Accounting Standards Board. The results indicate wide expectation gaps and misconceptions about audit in Malaysia. An experiment conducted among investors revealed the effectiveness of the use of reading material to educate users and correcting some misconceptions.
Fadzly et al. (Tue,) studied this question.
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