The audit expectation gap occurs when there is a difference between the expectations of the ________.
A)auditors and financial statement users
B)auditors and company under review
C)company under review and financial statement users
D)generally accepted accounting principles and auditors

Question

Quizplus · Accepted Answer

The audit expectation gap refers to the difference in expectations between auditors and financial statement users, such as investors, creditors, and regulators. Auditors are expected to provide reasonable assurance that financial statements are free of material misstatements, but users may have unrealistic expectations about the auditor's ability to detect all errors and fraud. This can lead to a gap between what users believe auditors should be doing and what auditors are actually doing.

The Audit Expectation Gap Occurs When There Is a Difference