An analysis of the audit expectation gap in the Maltese central government

Abstract

This paper analyses the audit expectation gap (AEG) in the Maltese central government. Interviews were conducted with NAO Malta auditors and with users, while questionnaires were distributed to additional NAO Malta auditors and to members of parliament. The authors found some important gaps between NAO Malta and the users of its reports in terms of auditor’s responsibility, materiality, fraud detection, audit reports and audit judgement. This paper contributes to the literature by identifying successful practices that have been implemented to reduce the AEG and proposing recommendations on how to further diminish the gap.