Audit Expectations Gap in the Swedish National Audit Office

Abstract: Background and Problem: The audit expectation gap is an interesting phenomenon whereseveral academics and researchers have studied this subject in the audit environment. However,in relation to the research conducted on the audit expectation gap in the private sector, a lack ofresearch exists on the audit expectation gap in the public sector. The importance ofunderstanding and realising the audit expectation gap in the public sector relies on the threatthe gap has on the legitimacy and trust of the national audit offices and public auditors. Purpose: This research study aims to explore the audit expectation gap in the public sector.The study seeks to investigate what manifests the audit expectation gap between the SwedishNational Audit Office and the society of Sweden. In addition, the study aims to moreoverunderstand the reasons for making the audit expectation gap emerge. Method: The study includes two different research methods aimed to explore the differentperceptions of the public auditors and the society concerning the roles and responsibilities ofpublic state auditors. Semi-structured interviews with auditors from the Swedish National AuditOffice were conducted to comprehend their perception of public auditors. In comparison,content analysis on a published news article of the Swedish National Audit Office was observedto comprehend the Swedish society’s perceptions of public auditors. The two research methodswere then analysed and compared to explore if an audit expectation gap exists between thedifferent perceptions. Findings: The findings provide an understanding of different contributors causing an auditexpectation gap to emerge between the Swedish National Audit Office and Swedish society.The findings suggest that the audit expectation gap can be a consequence of the public lack ofknowledge in the office, poor performance or failure to adhere to core ethical principles byeither the individual auditor or office or the efficiency of the standard and its sufficiency toprovide with high-quality auditing. When such situations or circumstances emerge, the findingsindicate that an audit expectation gap is manifested between the Swedish National Audit Officeand the Swedish society.