Week 1 - Closing the Expectation Gap

Question 1

What can auditors send to close the expectation gap?

Answer 1

An engagement letter

Question 2

What should the engagement letter say?

Answer 2

Should clearly set out the scope of the audit and the responsibilities of the auditors (and of management)

Question 3

How should the audit report be worded (3 points)?

Answer 3

• setting out the scope of the audit
• the responsibilities of the director and auditor
• ‘long-form’ audit reports for listed companies

Question 4

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

Answer 4

Have an educational role of the audit committee

Question 5

What could be done worldwide to close the expectation gap?

Answer 5

Improve public awareness of the role of audit and auditors