Abstract:
Purpose – This paper reviews a substantial body of scholarly work on the audit expectation gap (AEG) for
many years and aims to construct a new synthesis of the existing knowledge of the AEG discovered by
numerous scholars in the world.
Design/methodology/approach – A broad search of the literature was conducted using a few AEG related
keywords in the Google Scholar search engine and two databases of Scopus and Emerald from 1974 to 2021.
Only the articles published in reputable journals concerning the AEG were selected after applying some
selection criteria.
Findings – The concept of AEG is a multidimensional concept. Different causes for the AEG were identified,
and several strategies were summarized into major promising strategies for narrowing it. It was found that the
AEG cannot be eradicated entirely from society.
Practical implications – This review of the literature will be of interest to auditors, financial statement users,
regulatory agencies, and policymakers, among other parties. Further, this AEG synthesis may be useful in
understanding misperceptions and determining how they differ across diverse stakeholders.
Originality/value – There is a dearth of literature review studies incorporating all the facets of AEG. Hence,
this study incorporates all those facets, namely research methods and instruments and dimensions used along
with causes and mechanisms to narrow down the AEG while addressing the gaps and highlighting the themes
for future research. Finally, a fresh, yet more straightforward definition was generated as a result of the
comprehensive review of the literature, adding novelty to the extant literature.
