International Conference on Business and Information (ICBI)
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Item Audit Expectation Gap: A Review of Literature(Faculty of Commerce and Management Studies, University of Kelaniya, 2021) Deepal, Deepal, A.G.; Jayamaha, A.Unexpected failures of corporate giants such as Enron, World Com, Arthur Andersen, and Xerox together with scams and financial scandals in the world have seriously damaged the image of the audit profession. As a result, society’s confidence and reliance on auditors have decreased while their expectations pertaining to the audit profession have increased, establishing an Audit Expectation Gap (AEG). Hence, the concept of AEG has been studied using various interpretations, as well as varied manifestations of the structure, limitations of each component, and related contributing variables. The purpose of this paper is to construct a new synthesis to the existing knowledge of AEG discovered by numerous scholars in the world. Hence, this study reviewed literature pertaining to definitions and meanings of AEG, relevant theories and models deployed, the factors contributed to the gap and several research methods used in empirical studies by numerous scholars. As a desk research, this study further reviewed the empirical studies pertaining to the developed and developing countries separately. As per the methodology in this study, the keywords, namely “audit expectation gap” and “audit expectation-performance gap” were used to search relevant publications in google scholar database. The research articles published from 1974 onwards were mainly selected. It was found that the empirical studies pertaining to the public sector is very few whereas there is a dearth of such studies in Sri Lanka. Finally, a fresh, but a more straightforward definition was created and described the significance of AEG, adding novelty to the extant literature, and given suggestions for further studies.Item FINANCIAL PRACTICES AND EFFICIENCY OF COOPERATIVE RURAL BANKS IN SRI LANKA(2010) Jayamaha, A.; Mula, J.M.Many small financial institutions (SFIs) in developing countries make great effort to provide efficient services to the poorhouse holders. It is generally accepted that maintaining the financial strength which is importance in corporate governance mechanism of institutions, has a close relationship with the efficiency of financial institutions, although they are small. However, there is a doubt of efficiency of SFIs in developing countries due to not maintaining appropriate financial practices. In Sri Lanka, recent collapses of many financial institutions also signal that they do not maintain sound financial practices. Cooperative rural banks in Sri Lanka (CRBs) one of the formal SFIs in Sri Lanka which serve a large number of customers, deal with a large amount of funds and have substantial contributions to the rural financial sector during the last four decades. This paper seeks to test financial strength of cooperative rural banks in Sri Lanka (CRBs) and whether these strengths have a significant impact on efficiency of these institutions. The financial strength of CRBs was assessed using ratios of capital adequacy, liquidity, asset quality, loan to deposit, profitability, loan portfolio yield, operational efficiency, and operational self-sufficiency. The efficiency of CRBs in Sri Lanka was examined by using Data Envelopment Analysis (DEA), a non-parametric analytic technique. Based on the data extracted from CRBs? financial statements, correlation coefficients showed that several financial practices have significant associations with the efficiency of CRBs in Sri Lanka. This confirms that efficient SFIs maintain sound financial practices which contribute to higher levels of efficiency.