What Is the Audit Expectation Gap

question 87

Multiple Choice

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.

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Definitions:

Social Comparison

The process of comparing oneself to others in order to evaluate one's own abilities, status, or situation.

Cautious

Describes a behavior characterized by careful foresight to avoid potential risks or dangers.

Extraversion

A personality trait characterized by outgoingness, high levels of sociability, and a preference for social interaction.

Conscientiousness

A personality trait characterized by diligence, carefulness, thoroughness, self-discipline, and responsibility.