The Relationship Between Audit Expectation Gap and Audit Report Readability

Document Type : Research Paper

Authors

1 Department of Economics and Administrative Sciences, Qaenat Branch, Qaenat Islamic Azad University, Iran

2 Department of Economics and Management Ferdowsi University, Mashhad, Iran

3 Department of Economics and Management, Payamenoor University, Tehran, Iran University/Institution: Payamenoor University Town/City: Tehran

10.22059/ijms.2024.363047.676084

Abstract

The present study assesses the relationship between the audit expectation gap and reports' readability. The study uses information from firms listed on the Tehran Stock Exchange from 2014-2020, using a sample of 128 firms (816 observations). The regression method was employed for testing hypotheses. Based on the text length index, the results indicate a negative and significant association between the audit expectation gap and audit report readability. However, no association was found between the total audit expectation gap and the report readability based on the Fog index. The relationship between the illogical expectations gap and the audit report readability based on the Flesch index was insignificant. The Fog index shows a negative and significant relationship between the illogical expectations gap and audit report readability, and the Flesch index shows a negative and significant relationship between total audit expectations and audit report readability.

Keywords

Main Subjects

References

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Interdisciplinary Journal of Management Studies (Formerly known as Iranian Journal of Management Studies)
Volume 18, Issue 1
January 2025
Pages 19-32

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