Week 1 - Closing the Expectation Gap Flashcards

1
Q

What can auditors send to close the expectation gap?

A

An engagement letter

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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)

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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
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4
Q

What could be done in the audit committee to close the expectation gap?

A

Have an educational role of the audit committee

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5
Q

What could be done worldwide to close the expectation gap?

A

Improve public awareness of the role of audit and auditors

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