This study aims to analyze the impact of the development of the informational content of the external auditor’s report, in accordance with international auditing standards, on the expectation gap between external auditors and users of financial statements and reports. The significance of the study stems from highlighting the amendments introduced by the Auditing Standards Board regarding audit reports and their role in reducing the expectation gap by increasing the level of disclosure. Accordingly, the research problem is evident in examining the effect of the latest amendments made to the external auditor's report by the International Auditing and Assurance Standards Board (IAASB) on the audit report sections and their impact on the audit expectation gap, The key findings of the theoretical study indicate that the content of the external auditor’s report has significantly evolved due to amendments issued by the Auditing Standards Board in January 2015. These changes included a noticeable modification in the report's structure, rearrangement of its sections, the addition of new sections that were not previously included, and a clearer delineation of responsibilities. The amendments introduced by the Auditing Standards Board have had a positive effect in reducing the audit expectation gap between auditors and users, The field study results further confirm the validity of the hypotheses, demonstrating a statistically significant impact between the development of the informational content of the external auditor’s report, in line with international auditing standards, and the expectation gap. This confirms the importance of these amendments in improving the informational content of the report. Therefore, the researcher recommends that regulatory bodies in Egypt implement the new amendments related to the external auditor’s report and revise Egyptian auditing standards to align with international auditing standards. |
