Expectation Gaps in Internal Auditing: an Examination of the Perspectives of External and Internal Auditors

Abstract

This research explores the expectation gaps in internal auditing by examining the perspectives of both internal and independent auditors. While audit expectation gaps have traditionally been discussed in the context of external auditing, similar issues arise within internal audit practices, particularly due to differences in stakeholder expectations and the actual scope of audit responsibilities. Utilizing a qualitative research methodology through in-depth interviews with auditors, the study identifies discrepancies in expectations regarding internal audit’s role in transparency, institutionalization, risk management, independence, and report objectivity. Findings reveal that while internal auditors generally express confidence in their compliance with ethical and regulatory standards, independent auditors are more skeptical, especially concerning independence and practical impact. The research concludes that reducing the expectation gap requires not only regulatory improvements and performance enhancements but also managing unrealistic stakeholder expectations through education and transparent communication. © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2026.