- This topic has 2 replies, 2 voices, and was last updated 7 years ago by
.
- Posts
Sir, what exactly is the meaning of expectation gap?
I find some of the details provided say that Auditor must test all transaction, detect all errors and fraud , produce FS and confirm that the company is a going concern . How is this possible`? Please, throw more light on what expectation is really talking about.
Thanks
The expectation gap is the difference between what many members of the public and shareholders might think auditors do and what they actually do. The auditors do NOT
Test every transaction
Find every fraud
Guarantee the accounts are completely correct
Prepare the FSAll that auditor do is provide reasonable assurance that the FS are free of material misstatement
Also, a ‘clean’ audit report does not mean that the company is a good investment.
- You must be logged in to reply to this topic.