In the light of corporate scandals, pressure has increased on organizations to communicate information related to their corporate social responsibility (CSR). In order to keep up with the increased pressure on social commitment, organizations’ self-descriptions may be future-oriented rather than reflections of reality. The future-oriented communication may improve the organizational culture and thereby motivate staff to perform more efficiently. On the other hand, if the organization does not fulfill their CSR communication it could lead to internal skepticism. This thesis constitutes a case study of the organization Coop, comprising whether the relationship between its CSR communication and the internal perception of Coop’s CSR work in store has affected their organizational culture.   In order to answer How does Coop communicate it sustainability work through its external communication? and How does the staff perceive Coop's sustainability work? a qualitative content analysis and interviews with Coop’s staff have been conducted. The theoretical framework consists of Nils Brunsson’s (2006) theory about Organized hypocrisy, and Christensen's (1997) Autocommunication.   A conclusion that can be made from the results of this thesis, is that the image communicated from Coop (regarding their sustainability work) does not seem to be fully aligned with the staff’s perception of Coop’s sustainability work. Coop’s definition of their sustainability work had only been acknowledged by some, whereas half of the staff had individual interpretations of Coop’s sustainability work. The various definitions of sustainability among the staff led to various attitudes towards Coop’s sustainability work, which ultimately resulted in a fragmented organizational culture.

The auditor’s report has been criticised for being uninformative at least since the late nineteenth century. Despite persistent requests for detailed information in order to facilitate users’ decision-making processes, auditors have only recently started to provide entity-specific information in their reports. Against this background, two research questions are raised: (1) What were the driving forces behind the evolution of the auditor’s report? (2) How can dissatisfaction with and misperceptions of audit reporting be reduced in order to support financial statement users’ decision-making processes? As the object of study, the Swedish auditor’s report is chosen since it has, up to the present day, deviated from reports in other jurisdictions and thus enables an extension of knowledge in the field of audit reporting. The first part of this dissertation contributes to previous auditing history and auditing profession research by answering the first research question through an analysis of approximately 1,800 historical Swedish auditor’s reports and numerous related documents. Applying a critical-theory perspective, the research findings suggest that during the course of history, auditors were able to adopt an auditor’s rather than a user’s perspective despite arguing in the interest of users. The second part of the dissertation contributes to previous audit reporting and expectation gap research by answering the second research question through a vignette experiment with Swedish financial statement users. The research findings indicate that dissatisfaction with the current auditor’s report can be reduced through additional entity-specific information concerning the auditor’s independence, the audit process and the audit findings, and less general information about the auditor’s responsibilities. Overall, this dissertation connects past events concerning the auditor’s report to current challenges and indicates possible future developments. / The auditor’s report is the financial auditor’s primary means of communication with users of financial statements. It has been criticised for being an uninformative document at least since the late nineteenth century. Persistent requests for change in order to facilitate users’ decision-making processes include detailed information about the audited financial statements, the conducted audits and the auditors. Despite these requests, auditors have only recently started to provide some entity-specific information in their reports. This dissertation contributes to the topical issue of audit reporting in relation to users’ needs through two studies. The first study retraces the historical evolution of the auditor’s report in order to explain the driving forces behind this evolution and the reasons why users have had to accept uninformative reports for such a long time. The second study examines ways to reduce dissatisfaction with and misperceptions of audit reporting and evaluates the current auditor’s report with regard to financial statement users’ decision-making processes. Overall, the findings of this dissertation cast doubt on the past and current willingness of auditors to deliver reports that are aligned with users’ needs to make informed decisions.

Introduktion: Tidigare studier har visat att intressenters förväntningar på revisionen skiljer sig från revisorernas och att ett förväntningsgap existerar. Bland de tidigare studierna som behandlar förväntningsgapet är forskningen kring revisorns väsentlighetsbedömning ytterst begränsad. Vi har inte funnit någon tidigare forskning där fokus legat på att förklara intressenters upplevda kännedom och faktiska kunskap kring ämnet, varför en sådan studie kan anses relevant att genomföra. Syfte: Syftet med denna studie är att förklara intressenters upplevda kännedom och faktiska kunskap kring revisorers väsentlighetsbedömningar. Metod: Studien utgår från en kvantitativ forskningsstrategi och en deduktiv ansats. En tvärsnittsdesign har använts och empiri har samlats in från kreditgivare, ekonomichefer och ekonomistudenter med hjälp av en enkätundersökning. Slutsats: Studiens resultat visar att det finns faktorer som kan förklara intressenters upplevda kännedom och faktiska kunskap, men att dessa två skiljer sig åt. Den enda faktorn som visar ett samband med både kännedom och kunskap är erfarenhet inom revision. / Introduction: Previous studies has shown that expectations on audit differ between stakeholders and auditors, and that expectation gap exists. Among the previous studies examining the expectation gap, there’s limited research on auditors’ materiality judgements. We have not found any previous research whose focus have been on explaining stakeholders’ familiarity and knowledge regarding the subject, justifying the relevance for such a study. Purpose: The purpose of this study is to explain stakeholders’ perceived familiarity and actual knowledge regarding auditors’ materiality judgments. Method: The study is based on a quantitative research design and a deductive approach. A cross-sectional design has been used and data from creditors, CFO’s and business students was gathered through a survey. Conclusion: The results show that there are some factors that can explain stakeholders’ perceived familiarity and actual knowledge, but it exists differences between them. The only factor that shows a relationship with both familiarity and knowledge is experience from audit.

The previous audit report gained a lot of criticism since it contained to much standard text that failed to convey valuable information for users. This lead to IAASB implementing a new standard, called ISA 701-KAM, which was implemented by all listed companies in the end of 2016. The purpose of KAM is to make the audit report less standardized and instead provide transparent and entity-specific information. However, there are those who believe that the confidentiality duty, which is prerequisite to be able to perform an audit, can stand in contrast to the new standard.  In order to investigate this issue, we have interviewed auditors to get their view of how they have implemented and applied KAM in the audit report. Our results show that auditors are skeptical in regards to the audit report being as entity-specific and transparent as IAASB expect it to be, since there exist an underlying fear of overstepping TCD.

The thesis deals with the public expectations in relation to external audit and especially the difference of these expectations from how auditors themselves percieve their role (so called expectation gap). First, it briefly outlines the origin, development and the role of external audit. The following chapters describe how the non-professional public understands audit, what are the causes of unreasonable expectations and to which areas they are most often related. Finally, the consequences arising from the existence of unreasonable expectations (or expectation gap) are reviewed and ways how to eliminate or at least reduce these expectations (expectation gap) are discussed.

Revisorer är en av grupperna som orsakar förväntningsgapet eftersom de ibland misslyckas med att identifiera sina ansvarsområden. Finansiella skandaler har på ett negativt sätt påverkat det förtroende företagens intressenter har för revisionen. Ett ökat förtroende kan bland annat resultera i en mer effektiv kapitalmarknad, som ett resultat av en ökad tillit till revisionen.  Tidigare studier har undersökt om revisionsutbildning som riktats mot allmänheten har en påverkan på förväntningsgapet. Om yrkeserfarenhet inom revision påverkar revisorernas del av förväntningsgapet, har inte studerats i en vidare omfattning. Till följd av finansiella skandaler har det visat sig att det existerar ett misslyckande bland revisorer, eftersom de till fullo inte är medvetna om sina ansvarsområden. Avsikten med studien är att undersöka om yrkeserfarenhet påverkar det här misslyckandet och därmed bidra till ett relativt outforskat område inom förväntningsgapet En kvantitativ studie genomfördes med enkäter som datainsamlingsmetod. Resultatet indikerar att svenska revisorer har en god kännedom, men inte är fullt medvetna om sina ansvarsområden. Resultatet visar dock att det med statistisk signifikans inte går att bekräfta att revisorers misslyckande påverkas av yrkeserfarenhet. / Auditors are one of the groups causing the audit expectation gap since they sometimes fail to identify their areas of responsibility. Financial scandals have negatively affected the trust that the companies’ stakeholders have for audit reports. An increased trust can, among others, result in a more effective capital market, as a result from increased trust to the audit report. Previous studies have examined whether or not audit education directed at the public has an effect on the audit expectation gap. Whether or not the work experience of auditors has an effect on the audit expectation gap have not been studied to a great extent. Following financial scandals, there have been shown to be a failure among auditors, since they are not fully aware of their areas of responsibility. The aim of the study is to examine whether or not work experience affect this failure, and thereby contribute to a relatively unexplored field, within the audit expectation gap. A quantitative study was conducted using questionnaires to collect data. The result indicates that Swedish auditors are generally knowledgeable, but not fully aware of their areas of responsibility. However, the result shows no statistical evidence that indicates that failure of the auditor is affected by work experience.

The relationship between taxpayers and tax practitioners is complex, as many diverse aspects shape their interaction. This explains why taxpayers and tax practitioners hold different expectations regarding tax services, leading to an expectation gap between taxpayers and tax practitioners. The primary objective of this qualitative study was to gain an understanding of the factors that contribute to the expectation gap between taxpayers and tax practitioners in South Africa. To achieve this primary objective, the Interactive Qualitative Analysis process was used as a research method to identify the factors that contribute to the expectation gap. Data were collected from four different South African focus groups, namely taxpayers, and three separate groups of different types of tax practitioners. Affinities were generated for each focus group, and possible cause-and-effect relations amongst the affinities were established using theoretical coding. A systems influence diagram was subsequently generated for each group to represent the entire system of influences and outcomes based on the perceptions of that focus group. Meta-themes relating to the key factors were identified by means of a thematic analysis of the affinities in a second coding cycle. These meta-themes led to the development of a conceptual framework of associations that describes the interactive nature of the expectation gap between taxpayers and their tax practitioners. Based on these associations, propositions were generated, and mechanisms and interventions regarding the roles of different groups in reducing the gap were suggested. A model for reducing the expectation gap was also proposed, based on the main themes that emanated from this study. The overarching theme is communication between taxpayers and their tax practitioners. This theme relates to the remaining six themes. These are capability of taxpayers and tax practitioners, clarity on the nature and scope of tax service, transparency on the fee structure of a tax service, external influences on taxpayers, the collecting agent’s systems and processes and finally incompatible compliance behaviour attitudes between taxpayers and tax practitioners. / Thesis (PhD)--University of Pretoria, 2013. / gm2013 / Taxation / unrestricted

New and revised Canadian Auditing Standards for audits of companies with fiscal periods ending on or after December 15, 2018 came into effect in April 2017. This paper examines the economic effects of one of the updates: the new auditor reporting requirement to disclose the auditor’s responsibilities over other information. We investigate the relationship between the existence of the auditor’s commentary about the MD&A within the other information paragraph on the auditor’s report and the reactions of users of the financial statements, namely investors and analysts, to the MD&A. We find that both investors and analysts do not respond to the auditor’s commentary about the MD&A within the other information paragraph present on the auditor’s report. Our result indicates that although the disclosure may not be providing additional information value to users of the financial statements as the standard setters intended, it is also not creating an increase in the audit expectation gap.

Bakgrund: Finanskriser, företagskonkurser och olika skandaler runt om i världen har resulterat i att revisorns tillförlitlighet har ifrågasatts och förtroendet för revisionsbranschen har skadats. Det bristande förtroendet tyder på att det finns skillnader mellan användarna av den finansiella rapporten och revisorernas förväntningar gällande revisionens utfall och har utmynnat i ett förväntningsgap. Revisorns uttalanden i revisionsberättelsen har utstått mycket kritik genom åren då den inte tillför ett informationsvärde för användarna. Revisionens förväntningsgap är ett fenomen som studerats över tid och nationella gränser men trots utveckling av lagstiftning fortfarande är bestående. IAASB har utgett ett utkast av en ny revisionsstandard, ISA 701, som ska bidra till en mer individualiserad revisionsberättelse i syfte att minska förväntningsgapet. De nya förändringarna kommer innebära att revisorn ska förse användarna med mer väsentlig information om vad revisorn funnit under granskningen i revisionsberättelsen.   Syfte: Syftet med denna studie är att undersöka revisorernas tolkningar angående den kommande revisionsstandarden ISA 701 samt vilken effekt de nya upplysningarna i revisionsberättelsen kan ge på revisionens förväntningsgap. Metod: Studiens empiriska material insamlades via kvalitativa intervjuer med nio auktoriserade revisorer. Slutsats: Den nya revisionsberättelsen bidrar till en bättre kommunikation än den som råder idag men effekten på förväntningsgapet kommer vara begränsad och inte på den nivå som IAASB har i åtanke. Revisorernas uttalanden enligt ISA 701 kommer i konflikt med revisionens lagstiftning i form av tystnadsplikt och därav blir informationsvärdet för användarna begränsat. Revisorernas uppfattning om ISA 701:s effekt på förväntningsgapet är att det kommer minska ytterst lite då den nya revisionsstandarden inte är fullt ut anpassad efter revisorernas förutsättningar. Ett förslag är en förändring av lagstiftningen som begränsar skadeståndsansvaret. Detta kan öka revisorernas trygghet i att ge användarna en större insyn i företaget genom att de kommer bort från den utsatta position som de upplever finns i dagsläget. / Background: Financial crises, corporate failures and various scandals around the world have resulted in that the auditors’ reliability has been questioned. This has consequently resulted in a loss of confidence in the accounting profession. This lack of confidence suggests that the differences between the users of the financial statements and the auditors’ expectations regarding the audit results have led to an expectation gap. Auditors’ statement in the audit report has endured much criticism over the years as it does not add an information value to users. Expectation gap is a phenomenon that has been studied over time and national boundaries but despite the development of legislation is still enduring. The IAASB has issued a draft of a new auditing standard, ISA 701, which will contribute to a more individualized audit report in order to bridge the expectation gap. The new changes will mean that the auditor will provide users with more substantive information about what the auditor found during the audit in the auditor’s report. Purpose: The purpose of this study is to examine the auditors’ interpretations regarding the upcoming auditing standard ISA 701, and the impact of the new information in the audit report may provide the audit expectation gap. Method: The study’s empirical material was collected through interviews with nine certified public accountants. Conclusion: The new auditor’s report will contribute to a better communication than the one that exists today but the effect on the expectation gap will be limited and not at the level that IAASB has in mind. The auditor statements in accordance with ISA 701 will conflict with the Swedish legislation in the form of secrecy and hence gets the information value to users is limited. The auditors’ opinion on the ISA 701’s effect on the expectation gap is that it will reduce very little when the new audit standard is not fully adapted to the auditors’ requirements. A proposal is a change in the law that limits the auditors’ liability. This may increase the auditor’s confidence in giving users a greater insight into the company by coming away from the exposed position that they feel are in the current situation.

Background: There are several studies that have found an expectation gap between auditors and different stakeholders. Since 2019, there has been a sharp increase in the number of individual investors in Sweden. There is a lack of studies examining the expectation gap between auditors and individual investors. Purpose: The purpose of the study is to analyze and explain whether Swedish auditors and individual investors have a different view regarding the auditor’s responsibility, reliability, and decision usefulness. Furthermore, the view of individual investors is analyzed with different demographic factors. Research method: This is a quantitative study with a deductive approach, where the hypotheses are developed from prior research. The empirical data comes from the answers from a mail survey and a web survey. The survey consisted of statements regarding the auditor’s responsibility, reliability, and decision usefulness. Results: The study shows that there is an expectation gap between auditors and individual investors in Sweden. The study also shows that experience from the stock market leads to a more narrow expectation gap between auditors and individual investors in Sweden. Contributions: The study contributes to a better understanding of what the expectation gap between auditors and individual investors in Sweden consists of. Additionally, it shows how individual investors in Sweden perceive the auditor’s responsibility, reliability, and decision usefulness / Bakgrund: Det finns många studier som konstaterat ett förväntansgap mellan revisorer och olika intressentgrupper. Sedan 2019 har antalet småsparare i Sverige kraftigt ökat. Det saknas studier som undersöker småspararnas förväntningar på revisorn. Syfte: Syftet med studien är att analysera och förklara huruvida svenska revisorer och småsparare har olika uppfattningar gällande revisorns ansvar, tillförlitlighet och beslutspåverkan. Vidare analyseras även småspararnas uppfattningar utifrån olika demografiska faktorer. Metod: Studien är kvantitativ med en deduktiv ansats, där hypoteserna utvecklats med hjälp av tidigare forskning. Empirin har samlats in genom en mailenkät och en webbenkät som utgörs av påståenden om revisorns ansvar, tillförlitlighet och beslutspåverkan. Resultat: Resultatet visar att det finns ett förväntansgap mellan revisorer och småsparare i Sverige. Vidare visar resultatet att utbildningsnivå inte minskar förväntansgapet, men att mer erfarenhet på börsen leder till ett mindre förväntansgap mellan revisorer och småsparare i Sverige. Kunskapsbidrag: Studien bidrar till ökad förståelse för hur förväntansgapet mellan revisorer och småsparare i Sverige ser ut. Därtill hur revisorer och småsparare i Sverige ser på revisorns ansvar, tillförlitlighet och beslutspåverkan.