Beyond the audit expectations gap

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Abstract
In seeking to encourage a broader, European dimension to research on auditing and audit expectations, this paper examines the recent history of auditing and its regulation in Spain within the context of international developments in the accounting profession. The more expansive role being assigned to the audit function in Spain following the implementation of the Fourth and Eighth European Company Law Directives is generally viewed by Spanish writers as a progressive step, with largely positive effects. Such views stand in some contrast to the history of auditing in Britain, where the prevalence of an ‘audit expectations gap’ suggests a rather more problematic state of affairs. In exploring both the Spanish context and the nature of the audit expectations gap in Britain, however, the paper reveals a common underlying belief in the potential of auditing. Through this comparative analysis, and by drawing on recent audit research challenging certain long-held assumptions about auditing, a number of questions are asked of the current form and status of auditing and auditing expectations in Britain and Spain. In so doing, the paper raises issues that go beyond the current confines of the audit expectations gap debate, stressing, in particular, the need for greater consideration to be given, through less Anglo-centric analyses, to the varying nature and capabilities of European audit practice.