Week 1 - Closing the Expectation Gap Flashcards
1
Q
What can auditors send to close the expectation gap?
A
An engagement letter
2
Q
What should the engagement letter say?
A
Should clearly set out the scope of the audit and the responsibilities of the auditors (and of management)
3
Q
How should the audit report be worded (3 points)?
A
- setting out the scope of the audit
- the responsibilities of the director and auditor
- ‘long-form’ audit reports for listed companies
4
Q
What could be done in the audit committee to close the expectation gap?
A
Have an educational role of the audit committee
5
Q
What could be done worldwide to close the expectation gap?
A
Improve public awareness of the role of audit and auditors