Abstract:
The Audit Expectation Gap (AEG) concept appears to be, unarguably, as old as the accounting and auditing
profession, hence has been variously researched. However, despite its apparent longevity in the accounting
literature, there seems to be little consensus as to its precise definition. The concept displays a high degree of
fluidity in both the academic and professional discourses. Interestingly, however, most of the discussions of the
concept appear to have tried to introduce unity into a conception where the facts show utmost divergence in
perceptions. Thus, the variability in the construction of the concept stands seemingly underestimated. This paper
analyses the origins and definitions of the AEG concept with a view to contributing to clarifying and
characterising it in the context of contemporary financial reporting and accounting ramifications. The paper
argues that the conceptual hitches need to be addressed to bring clarity to bear on the conceptualisation,
interpretation and application of the concept. It is contended that the lack of harmony in interpretation of the
concept has the potential, perceived and/or real, of perpetuating the AEG problem as attempts at tackling a
loosely couched phenomenon could prove ineffectual. This paper therefore is yet another modest contribution to
providing useful view points and insights supportive of efforts at understanding and evaluating the AEG concept.
This, it is believed, could provide added leverage to the incessant efforts and discourses aimed at devising
strategies and mechanisms for addressing the existence and/or curtailing the escalation of the concept.
