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Forums › ACCA Forums › ACCA AA Audit and Assurance Forums › expectation gap
what is Professional clearance and Expectation gap…….??
expectation gap is what clients expects auditors supposed to do. they might assume that auditors needs to detect every material misstatement or design system controls etc when that should’ve been the management’s job.
we can bridge that gap by using engagement letter which list out auditor’s reponsibilites and director’s responsibilites so there’ll be no misunderstanding and therefore avoid any potential ligitations aganst the firm
