What is the audit expectation gap?
A) The auditors' ensuring that financial statements are prepared in accordance with accounting standards.
B) The difference between what an auditor is required to do and what is expected by users.
C) The auditors' ensuring that they meet the requirements of an audit.
D) The auditors' providing a true and fair view of the financial statements.

Question

Quizplus · Accepted Answer

The audit expectation gap refers to the difference between what is expected of an auditor by users of financial statements and what auditors are actually required to do. The gap exists because users often have unrealistic expectations of what auditors can achieve, such as detecting all instances of fraud or ensuring the accuracy of financial statements. This can lead to dissatisfaction with audit results and a lack of trust in the accounting profession.

What Is the Audit Expectation Gap