Expectation gap

This is the gap between what auditors do and what shareholders might think they do. For example it is sometimes thought that:

Auditors prepare the FS
All transactions are checked
That all frauds will be discovered
That a clean audit report guarantees the FS are accurate.

E 5(a) of the study guide states: Identify and describe the basic elements of the
auditor’s report

Most tutors assume that this could include reference to the expectation gap when describing some of the paragraphs in the report.