Abstract
This study examines the audit expectation gap (AEG) in Ghanaian organizations, integrating agency theory and role conflict theory to analyze determinants, levels, and mitigation strategies. Using a quantitative approach with descriptive and explanatory designs, primary data were collected from 260 respondents, including auditors, accountants, managers, and financial report users across diverse sectors. The research addresses a critical gap in developing economy contexts where limited empirical evidence exists on AEG dynamics. Results reveal that auditors’ skills level constitutes the primary AEG determinant (mean = 4.57), followed by independence (4.28), societal perceptions (4.20), and auditing process nature (4.18). Gap analysis demonstrates significant expectation disparities in fraud detection (-3.31), account maintenance (-3.39), and financial misconduct disclosure (-3.36), indicating users' limited understanding of International Standards on Auditing. Structural equation modelling explains 65.1% of AEG variability, with operations and efforts, skills level, and auditing process nature showing positive significant impacts on gap scores. The study highlights that strategic mitigation requires legislative board interventions to clarify auditor-client roles, institutional reforms to focus on stakeholders’ education, and continuous professional development. Findings suggest technical competence supersedes independence in maintaining public confidence within Ghana's regulatory context. This research contributes novel insights to auditing literature in emerging economies, providing empirical evidence for regulatory bodies, professional associations, and practitioners to enhance audit quality while managing stakeholder expectations in developing financial markets.