In recent years,a series of significant management frauds cases have occurred in the inside and outside of China,resulting in the reduction of public confidence in audit reports and of the health and sustainable development of the capital market.The problem of how to effectively narrow the expectation gap in auditing management frauds has drawn the theoretical researchers and auditing professions attentions.The authors have made an empirical survey of auditors and financial managers to illustrate the current status of the expectation gap in auditing management frauds in China,in order to probe approaches to effectively narrow the expectation gap in auditing management frauds.