The Audit Expectation Gap Is the Difference in the Expectations

question 12

Multiple Choice

The audit expectation gap is the difference in the expectations of the

• A) assurance providers and the financial statement users.
• B) assurance providers and the audit client.
• C) audit client and the financial report or other users.
• D) audit client and the regulator.

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Definitions:

External Benefits

Benefits of a product or service that are enjoyed by people who are not directly involved in the purchase or production of it.

Federal Government

The national government of a federal country, which holds the central political authority.

Abolition

The action of abolishing a system, practice, or institution, such as slavery or capital punishment.

Private Property

Ownership of assets (land, buildings, goods) by individuals or corporations, legally protected by the government.