The use of Causal Theory in predicting the Expectation Gap between Auditors and users of Financial Statements: An Empirical Study on Canal Governorates in Arab Republic of Egypt

Abstract

The research aims at the use of the Causal Attribution Theory in predicting the degree and the actual causes of the expectation gap in auditing as an attempt to motivate the scientific and professional institutions of accounting and auditing and Governorates to narrow that gap and also to realize a high credibility for the audit services. This is very important for purpose of economic globalization. The research revealed the relation between the causal theory and the Audit Expectation Gap. In addition, the study suggested a psychological and quantitative approach for improving causal theory predictions regarding the degree and causes of Audit Expectation Gap. The vital causes of Audit Expectation Gap are: deficient Audit standards, deficient Auditors' performance, and the need for special legal rules for Accounting and Auditing profession.