Abstract:
The audit expectation gap (AEG) arises when public perceptions of auditors’
responsibilities differ from the actual duties defined by auditing standards. This gap
remains a critical challenge in the auditing profession, particularly in Sri Lanka,
where limited empirical research exists on its persistence among undergraduates
pursuing accounting and finance degrees. Addressing this gap through education is
essential for shaping accurate perceptions among future professionals, and there are
also inclusive findings within the literature related to the impact of audit education.
This study aims to evaluate the impact of auditing and assurance courses on
minimizing the AEG among undergraduates in Sri Lankan state universities.
Specifically, it investigates the influence of course content, teaching methods, student
engagement, practical experience, and feedback mechanisms on students’
understanding of audit responsibilities and limitations. A quantitative research design
was employed, and primary data were collected from 354 third- and final-year
students across seven state universities offering comparable auditing and advanced
auditing courses. Data were gathered via a structured questionnaire. Educational
variables were measured using five-point Likert-scale statements. The AEG was
assessed through statements relating to fraud detection, auditor versus management
responsibilities, and common misconceptions. Data analysis involved descriptive
statistics, correlation analysis, and multiple regression to examine the relationships
between educational components and the audit expectation gap. Findings reveal that
course content, practical experience, and feedback mechanisms have a significant
positive effect on reducing the AEG, while teaching methods show a moderate effect,
and student engagement does not have a statistically significant impact in this context.
This study contributes to the limited empirical literature in Sri Lanka by highlighting
the role of university audit curricula in shaping students’ understanding of auditor
responsibilities. The findings provide practical insights for academics, policymakers,
and professional bodies to align audit education with real-world practices.
