What Do You Expect? A Reconfiguration of the Audit Expectations Gap

This paper undertakes a conceptual enquiry into the idea of the expectations gap. This method of enquiry is explained as a philosophical investigation into the concepts used in the literature relating to the expectations gap. A descriptive conceptual enquiry is undertaken into the current use of the expression ‘expectations gap’ and the related terms ‘expectation’ and ‘expects’. It is argued that vagueness and misunderstandings of the uses of these expressions undermines a grasp of the issues involved and of how they are to be resolved. The paper looks at the various explanations of these expressions in the literature and suggests that more clarity in discussions of the issues would be achieved by characterizing expectations as beliefs about what auditors do or desires for them to perform certain procedures with certain qualities in audits. The grounds for the beliefs are considered. The belief that the auditor will do something because of a belief that it is a duty is examined. The way in which the auditor's beliefs that something is a duty determines what they do is explained through the idea of practical reasoning. The paper goes on to explore the suggestion that an expectation might also be some kind of desire that auditors perform certain actions in the context of an audit. These desires are related to a consideration of the objectives of auditing. The idea of the reasonableness of these desires is examined. The reasons for wanting auditors to undertake particular procedures can also underlie the acceptance of particular meanings of ‘audit’ and ‘auditing’. The audit expectations gap is reconfigured in terms of the beliefs and desires identified in the paper.