Date of Defense

Summer 5-17-1988




certified public accountant, auditing, auditor, financial reporting


The recent increase in bank and company failures has created a difference in expectations between the public accountant and the public. This "expectation gap" can be defined as the difference between what the public believes the CPA's role in the financial reporting process should be and what the public accountant believe that role is. Public accountants do not see their function as that of the financial analyst who examines the company's profitability and solvency. The public, investors, bankers, and other parties believe public accountants should discover all major errors and irregularities in a company's books, evaluate the company's ability to make a profit, and disclose such information in a timely manner. This report includes recommendations for the five essential components of the financial reporting process. These recommendations will assist the public accountant in performing his or her obligation to provide accurate and timely opinions on the financial statements of publicly held companies, thus narrowing the expectation gap.

Access Setting

Honors Thesis-Campus Only