Purpose This study aims to identify the determinants of the expectation gap between financial statement users (investors and bankers) and auditors from a developing country perspective with Cameroon as the case study. Design/methodology/approach This study makes use of the survey instrument to identify the determinants of the expectation gap in Cameroon. The research method and research design used for this study are similar to that adopted in Schelluch, Best et al., Fadzly and Ahmed, Desira and Baldacchino and Dixon et al. Findings The results indicate that audits and audited financial statements and auditors’ skills are good predictors of the audit expectation gap (AEG), whereas gender, years of experience and occupation (investors and accountants) do not have any significant influence on the AEG. It follows that the expectation gap is further widened by an increase in the regulation and duties of auditors concerning the reliability and usefulness of audits and audited financial statements and auditors’ skills. Research limitations/implications A limitation of this study is the sample size, which is limited in scope, with only 400 potential respondents. In addition, this study adopted a survey method used in countries with different economic views and cultural values from Cameroon. Practical implications This study contributes to current knowledge by identifying the determinants of the expectation gap in Cameroon, thus facilitating the adoption of measures aimed at mitigating this gap such as educating the Cameroonian public on the auditors’ duties, especially each time a new audit regulation is adopted. The paper is a critical reference point for future research on the subject in Cameroon. Originality/value This study contributes to the expectation gap discourse by uncovering the determinants of the expectation gap from a developing country perspective of Cameroon with a different economic and cultural outlook.

PurposeThe purpose of this article is to study how fair values in financial reports are audited.Design/methodology/approachThe study is a qualitative case study based on in-depth interviews.FindingsOne important finding is that auditors anchor in the figure presented by the company, and despite the auditing efforts, there is a substantial risk of management bias in the fair values reported. There is a risk for confirmation bias.Research limitations/implicationsRelatively, few respondents were employed in this study, but their background and competence lead to the assessment that the study provides a representative picture of what is being investigated.Practical implicationsAuditors may need to develop ways of performing auditing of fair values to reduce the risks identified in this study.Social implicationsThis study presents a perspective of the auditing process enabling an evaluation of the quality of fair value estimates regarding investment properties in the financial reports. This study also provides users of financial reports as investors, bankers and other institutions with an enhanced understanding of reported estimates of fair (market) values.Originality/valueVery few studies have investigated how auditors evaluate fair values of investment properties. This study contributes by giving users of financial reports an enhanced understanding of the quality of reported estimates of fair (market) values.

This study examines how a paradigm shift from traditional to digital audits could affect the audit expectation gap. It uncovers possible new areas of the expectation gap and threats and challenges resulting from this paradigm shift. The findings suggest that audit digitalization will result in the audit profession transitioning from the defensive approach of educating users on auditors’ duties to a constructive approach of using digital tools to perform some of the duties that users expect of auditors. Specifically, digital technologies have the potential to enhance internal controls and facilitate fraud prevention and detection, thus narrowing the expectation gap in relation to these critical issues. It may further accelerate the elimination of future challenges and threats and the narrowing of future expectation gaps. The potential benefits of switching to the constructive approach are lower costs for audit firms, enhanced audit quality, and improved client perceptions of auditors.

This study examines the future impact of digitalisation on auditing by synthesising empirical studies, relating them to surveys conducted by accounting bodies, and analysing these findings in relation to extant literature. Based on the synthesis, this study proposes a transitional framework to enable the audit profession to remain competitive. The results show that digitalisation may significantly affect the audit profession in the future. However, the impact is likely to be incremental rather than radical. To remain competitive, the audit profession needs to adopt new metrics, capabilities, skills and evolve its business models to incorporate digital technologies.  The contribution of this study is multi-faceted. The propositions and research agenda presented in this study will be beneficial to academics, practitioners, audit regulators, and the general public as they have the potential to form a foundation for addressing future research questions and for the theorisation and empirical testing of audit digitalisation.

Although the audit expectation gap has been subject to substantial research over the past two decades, it remains a controversial issue for the audit profession. This study, therefore, examines the existence of an audit expectation gap in Cameroon between auditors and users (accountants, bankers, and investors), assesses the dimensions of the gap, and relates the findings to prior findings on the expectation gap. A survey questionnaire capturing fifteen semantic different belief statements on a fivepoint Likert scale was filled by respondents (n=365). The questionnaire addressed issues concerning auditors' duties, and the consistency and usefulness of audits and audited statements of account. The results indicate significant evidence (α = 0.05) of an audit expectation gap concerning auditors' accountability to prevent as well as detect fraud and to maintain the soundness of internal control systems, and issues related to auditors' objectivity and impartiality. An expectation gap was equally observed regarding auditors' trustworthiness and whether audited statements of accounts obviously articulated the degree of guarantee and the work performed by auditors. We mainly recommend the establishment of an informative and educational platform aimed at keeping users abreast of auditors' responsibilities. These findings serve as a critical reference point for policymakers and regulators interested in enhancing audit quality and audit reliability in Cameroon and other developing economies exhibiting similar audit regulatory and socio-economic characteristics as Cameroon.