Thesis:

Examining the gap between the expectations of small and medium-sized company managers from auditing

This study examines the gap in expectations of small and medium-sized company managers from auditing. The issue of the audit expectations gap refers to the difference between the perceptions and expectations of managers and users of financial statements regarding the performance and responsibilities of auditors in the assurance process. The main objective of this study is to identify and analyze the factors that lead to this gap in small and medium-sized companies. For this purpose, using a descriptive-survey research method and collecting data through a questionnaire, managers' expectations and their correspondence with the actual responsibilities of auditors were examined and analyzed. The findings showed that managers of small and medium-sized companies mainly align their expectations from auditing with the detection of fraud and the presentation of financial reports, and contrary to popular beliefs, they do not have specific expectations from auditors in terms of assisting in managerial decisions or reducing taxes. These results showed that managers' limited awareness of the role and scope of auditors' authority, especially in small companies, is one of the key reasons for the expectation gap. It was also found that the difference in understanding of audit duties between managers and auditors can lead to a decrease in demand for audit services or distrust in the business environment. This research has taken an effective step in reducing the audit expectations gap by providing solutions such as improving managers' financial knowledge, clarifying the role of auditors, and developing audit standards tailored to the needs of small and medium-sized companies.

Keywords: Expectations gap, auditing, audit expectations gap, small and medium-sized enterprises, audit servic