Which of the following beliefs will narrow the audit expectation gap?
A)There is no guarantee the auditor will find all material fraud, should fraud have occurred.
B)The auditor is providing complete assurance.
C)The auditor is guaranteeing the future viability of the entity.
D)An unmodified audit opinion is an indicator of complete accuracy of the financial statements.

Question

Quizplus · Accepted Answer

Believing that the auditor cannot find all material fraud, even if it exists, narrows the expectation gap by acknowledging the limitations of an audit. The other beliefs mentioned (B, C, D) actually widen the expectation gap by creating unrealistic expectations of the auditor's role and responsibilities.

Which of the Following Beliefs Will Narrow the Audit Expectation