The contribution of corporate governance to narrow the expectations gap

Because of widespread criticism on the auditing profession by users of financial statements, and the subsequent charge to the owners of the profession, the profession was apt to lawsuits. The lack of understanding of users of financial statements of the main mission of the auditors resulted in incompatibility between the community's expectations of the auditor and his actual performance. This led to the emergence of the expectations gap.

The financial problems experienced by many major companies in the world resulted in the demand that there should be a set of controls, customs and moral and professional principles to achieve the confidence and credibility in the information contained in the financial statements. That has led the world to the attention of corporate governance.