The Manipulation Check Essay


Write an essay on The primary purpose of the manipulation check.


From this research paper or the project here, we can state that usefulness of explanations while it is compulsory for the ISA 700 auditor's statement which is revised appropriately to diminish the audit expectation gap. German financial as well as users auditor's report need to participate a competition where they should read an overall summary of an organization's financial reports and as well as the auditor's report, but latter they need to manipulated since auditor’s statement incorporated explanation as obligated by ISA 700 in opposition to with a just audit opinion-only version (Alford, 2013). The people brought out the point of views of the participants on the accounts with the financial statement and the management reliability. In this scenario, we need to present substantial evidence or the proof for a persistent expectation gap with help of the auditors responsibilities. Conversely, users as well as auditors reach a logical belief consensus that closely related to the financial statement and the management’s responsibilities reliability. In this context, justifications of the ISA 700 auditor's statement need not consequences in a little expectation gap. It also represents that the judgment of audit alone need to signal a useful and helpful which is related to the information or the statement to the users (Analysis of Credit Card Fraud Detection Techniques, 2016).

Group no.


Auditor responsibility

An ANCOVA was conducted with group that consisted of auditor against financial analyst opposed to students. Moreover, the auditor’s report consisted of inclusive report opposed opinion only (Diekmann and Jann, 2010).


Management responsibility

In the next step ANCOVA was conducted with group as well as auditor’s report kind as sovereign variables as well as management acountability index as a contingent variable.


Financial statement reliability

In the attempt to examine the RQ1c, an ANCOVA with group along with auditor’s report was conducted as the sovereign variables as well as the financial dependability index as the reliable variable (Eifrem, 2016).

The primary purpose of the manipulation check is to check the usefulness of the manipulation of the existence against the nonexistence of the rationalizations in the auditor’s report. In the manipulation check the participants were asked two questions post completion of the investigational survey. Primarily, the participants were inquired regarding the level to which they approved with the statement mentioning that auditor’s report gave in the case resources unambiguously provided description about the relevant responsibilities of management along auditors’. The entire mean replies was 4.81 for the whole report treatment along with 2.20 for the view merely treatment (F?redi-F?l?p, 2015). The means are distinctively dissimilar that indicates effective manipulation. The maltreatment verification was also effective when the research was effectively conducted for every in an isolated manner for each group. In this case the groups consist of auditors, financial analysts and students.

In the second case the respondents were inquired on the degree to that they accepted the report or statement of the auditor’s report given material unambiguously describes the scope as well as the doctrines of the auditor’s job. With the measurement as 1= powerfully disagree to 7= powerfully agree, it was seen that overall mean response was calculated to be 4.52 for the whole report treatment as well as 2.77 for the judgment only treatment. The means are distinctively altering as well as indicating useful manipulation. The manipulation verification was also successful at the time of conduct in an isolated manner for every group (Ihendinihu and Robert, 2014).

An audit expectation gap is a variation in between the public expect auditors that what they do and the auditors what they also do. To provide the knowledge about the significance and the importance of the expectation gap issues. Although it also creates no studies need to be conducted about the Audit expectation gap in Ghana. Moreover, the experiment sought to evaluate the existence of the audit expectation gap in well-known country Ghana. This type of assignment adapted such type of instrument by such other people in this context. The size of the sample was twenty stockbrokers and twenty auditors. Purposive and convenient sapling techniques are correctly used in this scenario. The instrument is used for the purpose of data collection was a questionnaire. This type of assignment shows that there presents expectation gap in Ghana. Rightly, to concern the auditor responsibility closely related to fraud prevention and detection, and soundness of the internal control framework of an audited individual (Nigrini, 2012). The researchers in this scenario recommend which the audit regulators and profession need to be formulating several types of rules and regulations and the standards that may guide the auditors adequately to achieve the reasonable expectations of a different group of the users.

Audit in every company is done in the attempt to determine the type of expenditure nd the accounts of the company. Prior to the auditing done, the company has a few expectations from the audit reports. But sometimes the original audit reports vary from the expected audit reports. This variance is called as audit expectation gap. As mentioned by Ojo (2006), the audit expectation gap is the differentiation between the expectation of the audit report as well as the original report that is presented by the external auditor. This is the most rigorous form of audit expectation gap because it precisely states the fact that the audit expectation gap is the differentiation between the expected report as well as the original report that is presented by the external auditor (Salehi, 2016).

In order to select the participants for the study, the researchers have implemented the system of asking a set of questions. The sampling techniques that have been used in the sampling techniques are purposive and convenient. Purposive sampling technique is used in selection of the user group in the attempt to represent the users of the financial statement. The distinct advantage of purposive sampling is that the researcher has the capability to use his skills and prior knowledge to select the respondents. Convenient sampling consists of technique that is used to select respondents who responded to the questionnaire that was put in front of them. Therefore from the study it is evident that the convenient sampling process is the most useful sampling process. It is also the most rigorous approach (Salehi, Mansoury and Azary, 2009).

Out of the 50 questions that were sent to the different groups it was seen that the 30 questions were returned from the auditors and 35 questions were returned by the stockbrokers. From the returned questions, it was seen that 20 questions were usable and were used for every group.

The study that that was conducted was based on primary data. The primary data was collected according to the answers that were provided by the participants. The questions that were put forth were closed ended. And the scoring involved 1 to 5 which increased from strong disagreement to strong agreement. This helped to maintain the anonymity of the study (Shim, 2011).F

Fraud detection was measured the primary objectives of the auditing procedure. In this scenario, the main aim of the auditing has a need to modified from fraud detection to verify the financial report or the statement because the auditing scenario sought to avoid the legal suits by general people and also the business. To such people, in audit responsibilities and the objectives has diminished its role in this scenario of fraud detection (Subramaniam, 2012). It also made the liability of the management. According to other people, such process in audit responsibilities and objectives to form the dissatisfactions of the organizations stakeholders, incorporated shareholders, potential and current creditors, investors, etc. In the other hand, it also provides the importance of expectation gap. It also represents the concern for the issues related to the expectation gap (Wells, 2007). The two significant flaws that are detected in the studies of two articles that both the articles discussed about the gap between the auditing expectation and actual auditing report. All the authors told about the training requirements, rigorous training and empirical experience help the auditors to eliminate the gap between the expectation of the auditing and the actual auditing reports. However, one of the most crucial factors is missing from the study that is ethics. The auditors should conduct audit with right code of conduct and ethics is necessary for accurate auditing. Moreover, there should some legal punishment to the accountants and auditors who release impaired financial statement or manipulated financial statement.


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Analysis of Credit Card Fraud Detection Techniques. (2016). IJSR, 5(3), pp.1302-1307.

Diekmann, A. and Jann, B. (2010). Benford's Law and Fraud Detection: Facts and Legends. German Economic Review, 11(3), pp.397-401.

Eifrem, E. (2016). Graph databases: the key to foolproof fraud detection?. Computer Fraud & Security, 2016(3), pp.5-8.

F?redi-F?l?p, J. (2015). An Empirical Study of Audit Expectation Gap in Hungary. TMP, 11(1), pp.37-46.

Ihendinihu, J. and Robert, S. (2014). Role of Audit Education in Minimizing Audit Expectation Gap (AEG) in Nigeria. IJBM, 9(2).

Nigrini, M. (2012). Benford's law. Hoboken, New Jersey: Wiley.

Salehi, M. (2016). Quantifying Audit Expectation Gap: A New approach to Measuring Expectation Gap. Zagreb International Review of Economics and Business, 19(1).Salehi, M., Mansoury, A. and Azary, Z. (2009). Audit Independence and Expectation Gap: Empirical Evidences from Iran. International Journal of Economics and Finance, 1(1).

Shim, J. (2011). Internal control and fraud detection. Cranbrook: Global Professional.

Subramaniam, C. (2012). Privacy Assurance and Fraud Detection in Healthcare Engineering. IJMO, pp.202-207.

Wells, J. (2007). Corporate fraud handbook. Hoboken, N.J.: John Wiley & Sons.

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