UK fund managers, audit regulation and the new Accountancy Foundation: towards a narrowing of the audit expectations gap?

Ian P. Dewing, Peter O. Russell

Research output: Contribution to journalArticlepeer-review

11 Citations (Scopus)


This paper reports the results of a postal questionnaire survey of UK primary stakeholders, members of the Institutional Fund Managers Association, as to the definition of the expectations gap, its constituents, and the extent to which the expectations gap might be narrowed by audit regulation. The study revealed that fund managers were aware of the audit expectations gap and were particularly concerned about the scope and responsibilities of the auditor, and monitoring of auditors’ work. Fund managers agreed that increased regulation offered potential to narrow the expectations gap, especially as regards monitoring and discipline of auditors. The paper concludes that establishment of the Accountancy Foundation should provide greater independence to the investigation and disciplinary processes of the existing regulatory framework, and thus go some way to narrowing the expectations gap. Concerns may remain about its perceived independence of the profession and the lack of a specific obligation to investigate auditors’ work in circumstances of corporate failure.
Original languageEnglish
Pages (from-to)537-545
Number of pages9
JournalManagerial Auditing Journal
Issue number9
Publication statusPublished - 2002

Cite this