In which area is there a gap between society's expectations of auditors and the perceived performance of auditors?
A)Compliance with laws and regulations.
B)The detection and reporting of earnings management and fraud.
C)Fair presentation of the financial report.
D)All of the given answers are correct.

Question

Quizplus · Accepted Answer

The detection and reporting of earnings management and fraud is an area where there is often a perceived gap in the performance of auditors, as society expects auditors to be able to detect and report such activities, but there have been high-profile cases in which fraud and earnings management have gone undetected by auditors.

In Which Area Is There a Gap Between Society's Expectations