Background: In today´s society it is challenging for auditors to maintain independence as they often are expected to provide advisory services. Previously, auditing was primarily seen as the independent review of financial reports, but societal developments have given auditing a greater significance as an advisor. Although the value of the auditor´s role has been questioned by some actors in society, 63% of companies that fall under voluntary audit still choose to engage an auditor. Expectation gaps arise when society and its actors expect services that the auditor cannot fulfill in order to maintain an independent position.

Purpose: The purpose of the study is to increase the understanding of medium-sized companies perceptions of the auditor´s role as an advisor and whether there is an expectation gap.

Method: The study employed a qualitative method using semi-structured interviews as the data collection method. Respondent included individuals with various positions within the company, such as CFOs and CEOs, as they are typically the primary points of contact for auditors. By using such a method, a deep understanding of their opinions and experiences could be obtained.

Result and conclusion: Accourding to the results of the conducted study, there are differences in the perception of the auditor´s role as an advisor, which can be attributed to working with different audit firms. All participating companies reported the existence of an expectation gap in their relationship with the auditor, which they attribute to communication gaps. Based on the results we can conclude that the companies in the study demonstrate a strong demand for advice from their auditors. However, it is difficult to measure the size of the expectation gap since it is influenced by variety of factors. 

Keywords: Audit, audit advisory, advisory, expectation gap, insurance, security, medium-sized companies, stakeholders, benefits, cost.