| Summary: | Public confidence is fundamental for the existence of auditors. Recent spectacular
business failures in the US and UK have sparked off a confidence crisis in the auditing
profession in these countries. This study addresses the issue of public confidence in
Singapore by investigating whether the confidence crisis overseas has proliferated to
Singapore. A questionnaire survey of financial and credit analysts and tax assessment
officers revealed that the public confidence in Singapore is 3.74 on a scale of 1 to 5. This
finding can be adequately explained by the proposed framework of public confidence which
comprises five determinants - regulation, auditing methodology, auditors' qualities,
expectation gap and recession. The mechanisms of these determinants were illustrated with
real world phenomena. Although the empirical study revealed that the auditing methodology
and the qualities necessary for conducting an audit in Singapore are considered fairly
adequate, expectation gaps with respect to auditors' duties and qualities exist. Finally,
potential problems were identified with reference to the framework and several measures
were recommended to counteract both existing and potential problems in order to enhance
and maintain public confidence in the profession in Singapore. In today's complex and
dynamic business environment, the profession must be vigilant and implement appropriate
measures to keep itself relevant in order to serve public interests in the best possible manner
and maintain public confidence in the profession.
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