ICAEW ARF · Chapter 1 · Question 6 of 10
Which of the following public perceptions is an example of the 'expectation gap' in auditing?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) An unmodified audit opinion means the financial statements are guaranteed to be completely accurate
Explanation
The expectation gap is the difference between what users believe auditors do and what auditors actually do. Believing that an audit guarantees complete accuracy is a common misunderstanding, because an audit provides reasonable assurance only and materiality means small errors may remain. The other three statements are accurate descriptions of the audit.
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