AAA – Nov 2011 – L3 – SAII – Q14 – Ethical Issues in Auditing

Definition of the gap between public expectation and auditor conduct.

Question

A situation where public expectation is reasonable but the auditor’s conduct does not meet the required standards is known as …………………..

Answer

Expectation Gap

Explanation:
The Expectation Gap occurs when there is a discrepancy between what the public reasonably expects from an auditor’s role and the actual performance or conduct of the auditor. This gap can lead to misunderstandings about the auditor’s responsibilities and may result in diminished trust if the auditor’s actions fall short of ethical or professional standards.

Tags: Auditor Conduct, Ethical Standards, Expectation Gap, Public Expectation
Level: Level 3

Topic: Ethical Issues in Auditing
Series: NOV 2011

Uploader: Dotse