The audit expectation gap is narrowed by realistic user expectations such as that the auditor ________.
A)tests a sample of transactions
B)is providing complete assurance
C)is guaranteeing the future viability of the entity
D)will definitely find any and all fraud

Question

Quizplus · Accepted Answer

Realistic user expectations can narrow the audit expectation gap, and one example of such an expectation is that the auditor tests a sample of transactions. This expectation aligns with the auditor's responsibility to obtain reasonable assurance and perform auditing procedures to address the risk of material misstatement in the financial statements. Expecting the auditor to provide complete assurance (B) or guarantee the future viability of the entity (C) is unrealistic and goes beyond the scope of an audit. Similarly, expecting the auditor to definitely find any and all fraud (D) is unrealistic and is not the primary objective of an audit.

The Audit Expectation Gap Is Narrowed by Realistic User Expectations