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Measures that can be used in Minimizing audit expectation Gap.

Expectation gap is the gap between what public believe that auditors do and what actually auditors do or ought to do. Expectation gap occurs when the audits fail to meet the expectations of users of audited financial statements.

Audit expectation gap is a phenomenon which is likely to exist for a number of year to come. However efforts from all the concerned parties can minimise the gap.



The following are some of the measures that may reduce the expectation gap.

  • Reducing non-audit services as a way of fostering more independence.
  • Strict measures should be adopted by the regulator to enhance independence and quality of audit work.
  • Awareness and education. Auditors believe that the expectation gap is largely due to the lack of public’s understanding on the role of auditor in examining financial statements particularly in relation to fraud and error detection. To minimise this gap, there should awareness program and education to the public on auditor’s role and guiding standards
  • Reduce ambiguity in ISAs or Role of Standards.
  • The international standards on auditing (ISAs) need to be refined on continual basis in order to minimise subjectivity of auditors and misapplication of auditor’s judgements

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