Audit Expectation Gap: Views of Audit Professionals and Financial Statement Users on Narrowing the Gap in the UAE

Abstract

This study investigates the audit expectation gap (AEG) in the United Arab Emirates (UAE) by exploring the perspectives of auditors and financial statement users. Drawing on the ACCA (2021) three-component framework, it examines the knowledge gap, performance gap, and evolution gap, and assesses how stakeholders perceive existing and proposed strategies to narrow these gaps. The study employs a qualitative, interpretive approach using semi-structured interviews analysed through thematic coding. Findings indicate that while auditors broadly agree on the scope of their professional responsibilities, users of financial statements frequently hold misaligned expectations, particularly regarding fraud detection. The study identifies the need for enhanced auditing education in the UAE, stronger auditor independence mechanisms, and the adoption of advanced audit technologies. It also underscores the importance of ongoing dialogue among auditors, regulators, investors, and other stakeholders as a routine professional practice, rather than a reactive response to financial crises or corporate scandals.