Yarn created by following expert (5)
I believe the answer is:
fable
'yarn' is the definition.
(both can mean a story)
'by following expert' is the wordplay.
'by' means one lot of letters go next to another.
'following' becomes 'f.' (used when citing page numbers etc).
'expert' becomes 'able' (I've seen this in another clue).
'f'+'able' is 'FABLE'.
'created' acts as a link.
(Other definitions for fable that I've seen before include "Myth, legend" , "Aesop's story?" , "Allegory" , "It's not true" , "Mythological story" .)