IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v10y2026i3p728-735.html

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

Author

Listed:
  • Mohamed Abdulrahman Mohamed Alattas Alhashmi

    (Faculty of Technology Management and Business, Universiti Tun Hussein Onn Malaysia, 86400 Parit Raja, Johor)

  • Mohd Lizam

    (Faculty of Technology Management and Business, Universiti Tun Hussein Onn Malaysia, 86400 Parit Raja, Johor)

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.

Suggested Citation

  • Mohamed Abdulrahman Mohamed Alattas Alhashmi & Mohd Lizam, 2026. "Audit Expectation Gap: Views of Audit Professionals and Financial Statement Users on Narrowing the Gap in the UAE," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 10(3), pages 728-735, March.
    • Handle: RePEc:bcp:journl:v:10:y:2026:i:3:p:728-735
    as

    Download full text from publisher

    File URL: https://rsisinternational.org/journals/ijriss/uploads/vol10-iss3-pg728-735-202603_pdf.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijriss/view/audit-expectation-gap-views-of-audit-professionals-and-financial-statement-users-on-narrowing-the-gap-in-the-uae/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Quick, Reiner, 2020. "The Audit Expectation Gap: A Review of the Academic Literature," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 124768, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    2. Fama, Eugene F & Jensen, Michael C, 1983. "Agency Problems and Residual Claims," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 327-349, June.
    3. Pierre Astolfi, 2021. "Did the International Financial Reporting Standards Increase the Audit Expectation Gap? An Exploratory Study," Post-Print hal-03712181, HAL.
    4. Nwaobia A. N. & Kwarbai J. D. & Jayeoba, O. O. & Ajibade A. T., 2016. "Financial Reporting Quality on Investors’ Decisions," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 2(7), pages 140-147, 07-2016.
    5. Jensen, Michael C. & Meckling, William H., 2008. "Theory of the firm: managerial behavior, agency costs and ownership structure," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 48(2), April.
    6. Pierre Astolfi, 2021. "Did the International Financial Reporting Standards Increase the Audit Expectation Gap? An Exploratory Study," Accounting in Europe, Taylor & Francis Journals, vol. 18(2), pages 166-195, May.
    7. Hichem Khlif & Mohsen Souissi, 2010. "The determinants of corporate disclosure: a meta‐analysis," International Journal of Accounting & Information Management, Emerald Group Publishing Limited, vol. 18(3), pages 198-219, September.
    8. Lauren Ellul & Alison Scicluna, 2022. "An analysis of the audit expectation gap in the Maltese central government," Public Money & Management, Taylor & Francis Journals, vol. 42(4), pages 262-273, May.
    9. Aluthgama Guruge Deepal & Ariyarathna Jayamaha, 2022. "Audit expectation gap: a comprehensive literature review," Asian Journal of Accounting Research, Emerald Group Publishing Limited, vol. 7(3), pages 308-319, April.
    10. Hichem Khlif & Mohsen Souissi, 2010. "The determinants of corporate disclosure: a meta‐analysis," International Journal of Accounting & Information Management, Emerald Group Publishing Limited, vol. 18(3), pages 198-219, September.
    11. Klaus Ruhnke & Martin Schmidt, 2014. "The audit expectation gap: existence, causes, and the impact of changes," Accounting and Business Research, Taylor & Francis Journals, vol. 44(5), pages 572-601, October.
    12. DeFond, Mark & Zhang, Jieying, 2014. "A review of archival auditing research," Journal of Accounting and Economics, Elsevier, vol. 58(2), pages 275-326.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Juhendra Debbarma & Chinmoy Roy & Manik Chakraborty, 2025. "Audit Attribute-based Capital Financing Decision in NSE-listed Companies: Evidence from India," Paradigm, , vol. 29(2), pages 142-160, December.
    2. Like Jiang & Paul André & Chrystelle Richard, 2018. "An international study of internal audit function quality," Accounting and Business Research, Taylor & Francis Journals, vol. 48(3), pages 264-298, April.
    3. Alhababsah, Salem & Yekini, Sina, 2021. "Audit committee and audit quality: An empirical analysis considering industry expertise, legal expertise and gender diversity," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 42(C).
    4. Florio, Cristina, 2024. "A structured literature review of empirical research on mandatory auditor rotation," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 55(C).
    5. Baarda, James R., 2003. "Current Law & Economics Debates: Tools for Assessing Fundamental Cooperative Changes?," 2003 Annual Meeting, October 29 31802, NCERA-194 Research on Cooperatives.
    6. Preet Singh & Chitra Singla, 2016. "Executive Stock Options: Will it Work as a Good Governance Mechanism in all Scenarios?," Working Papers id:10985, eSocialSciences.
    7. Tarek Roshdy Gebba & Mohamed Gamal Aboelmaged, 2016. "Corporate Governance of UAE Financial Institutions: A Comparative Study between Conventional and Islamic Banks," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 6(5), pages 1-7.
    8. Evans, Lewis & Meade, Richard, 2005. "The Role and Significance of Cooperatives in New Zealand Agriculture, A Comparative Institutional Analysis," Working Paper Series 3847, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    9. Mei, Maggie Qiuzhu & Wang, Le & Yan, Jie, 2023. "Maintaining product quality consistency when offshoring to emerging markets: The role of subsidiary control," Journal of International Management, Elsevier, vol. 29(1).
    10. Brogi, Marina & Lagasio, Valentina, 2022. "Better safe than sorry. Bank corporate governance, risk-taking, and performance," Finance Research Letters, Elsevier, vol. 44(C).
    11. Isabelle Le Breton–Miller & Danny Miller, 2006. "Why Do Some Family Businesses Out–Compete? Governance, Long–Term Orientations, and Sustainable Capability," Entrepreneurship Theory and Practice, , vol. 30(6), pages 731-746, November.
    12. Raputsoane, Leroi, 2025. "Global mineral companies attributes and corporate governance," MPRA Paper 123205, University Library of Munich, Germany.
    13. Alastair Marais, 2024. "Audit Quality and Financial Statement Manipulation: The Moderating Effect of Tone at the Top," International Journal of Economics and Financial Issues, Econjournals, vol. 14(5), pages 220-232, September.
    14. Salazar Idana & Galve Górriz Carmen, 2011. "Determinants of the Differences in the Downstream Vertical Integration and Efficiency Implications in Agricultural Cooperatives," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-26, February.
    15. Panagiotis Staikouras & Christos Staikouras & Maria-Eleni Agoraki, 2007. "The effect of board size and composition on European bank performance," European Journal of Law and Economics, Springer, vol. 23(1), pages 1-27, February.
    16. Kausar, Asad & Shroff, Nemit & White, Hal, 2016. "Real effects of the audit choice," Journal of Accounting and Economics, Elsevier, vol. 62(1), pages 157-181.
    17. Zvi Singer & Jing Zhang, 2022. "Do companies try to conceal financial misstatements through auditor shopping?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 49(1-2), pages 140-180, January.
    18. Christian Weiss & Stefan Hilger, 2012. "Ownership concentration beyond good and evil: is there an effect on corporate performance?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(4), pages 727-752, November.
    19. Ayman Hassan Bazhair & Mohammed Naif Alshareef, 2022. "Dynamic relationship between ownership structure and financial performance: a Saudi experience," Cogent Business & Management, Taylor & Francis Journals, vol. 9(1), pages 2098636-209, December.
    20. Opler, Tim & Pinkowitz, Lee & Stulz, Rene & Williamson, Rohan, 1999. "The determinants and implications of corporate cash holdings," Journal of Financial Economics, Elsevier, vol. 52(1), pages 3-46, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:10:y:2026:i:3:p:728-735. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.