ACCA AA · Chapter 1 · Question 5 of 8
Which of the following beliefs held by some users of financial statements contributes to the 'expectation gap'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) An unmodified audit opinion means that the company is financially sound and will not fail
Explanation
The expectation gap is the difference between what users believe auditors do and what auditors actually do. An audit opinion is not a guarantee of the entity's future viability or financial health. The other three statements are accurate descriptions of the audit and so do not contribute to the gap.
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