PurposeThis 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/approachA 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.FindingsThe 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 implicationsThis 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/valueThere 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.

The Audit Expectation Gap (AEG) issues are steadily expanding around the globe, irrespective of the particular sector involved. A comparative analysis will be more crucial for the AEG literature since the significance of the expectation concerns stems from the concepts of "stewardship and public accountability", which are applicable to audits in both private and public sectors. Thus, the purpose of this study is to analyze the similarities and distinctions between the AEG studies conducted pertaining to the private and public sectors. This research is directed by theoretical considerations and arrives at conclusions based on the extant literature. An exhaustive search of the published literature was conducted by applying the search terms “expectation gap” and “audit expectation gap” combined with “public sector”, “government sector” and “performance audit” in the Google Scholar search engine and three databases of Scopus, Jstor, and Emerald were performed separately and independently for each sector from 1970 to 2022. Thus, only the articles published in reputable journals concerning the AEG were selected after applying some selection criteria. It was found that the research contexts, selected target populations, and the dimensions applied to assess AEG were selected after applying some selection criteria. It was found that the research context, selected target populations, and the dimensions applied to assess AEG were found to be significantly different, despite the fact that the definitions and statistical techniques used were found to be comparable in both sectors. This comparison study opens up a wealth of doors for conducting further research in the future.