Determinants of audit expectation gap: the case of Cameroon

Abstract

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.

Citation

Fossung, M.F., Fotoh, L.E. and Lorentzon, J. (2020), "Determinants of audit expectation gap: the case of Cameroon", Accounting Research Journal, Vol. 33 No. 4/5, pp. 561-576. https://doi.org/10.1108/ARJ-12-2019-0241