Differences Between the Views of Auditors and the Expectations of Other

question 25

Multiple Choice

Differences between the views of auditors and the expectations of other stakeholders regarding the appropriate roles and responsibilities of auditors and their performance is known as:

• A) corporate governance.
• B) audit exceptions.
• C) the audit expectations gap.
• D) cognitive dissonance.

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Definitions:

Perceived Market

The segment of a market that consumers are aware of or have a particular perception about, which may influence their purchasing decisions.

Pareto Efficient

A scenario in which it is impossible to improve the status of any individual or preference without adversely affecting at least one other individual or preference.

Negative Externalities

Costs suffered by a third party as a result of an economic transaction in which they were not involved, such as pollution.

Positive Externalities

Benefits that affect parties who did not choose to incur that benefit.