Chong and Pflugrath conducted a study of different audit report formats and their effects on the audit expectation gap
They investigated whether report length (long or short), the location of the audit opinion (at the start or the end), and plain language (instead of technical language) affect shareholders’ and auditors’ perceptions of the audit
An audit is a systematic process
It involves the gathering of evidence in a logical fashion to substantiate the balances and disclosures in the financial statements
All audits should follow the same process to ensure that professional standards are met
Regardless of the size or com- plexity of the entity, auditing principles remain the same
An audit is an assurance engagement performed to increase the confidence of financial state- ment users
Therefore, an audit is conducted to enhance the reliability and credibility of the information in the financial statements
However, it is not a guarantee that the financial state- ments are free from fraud and error
