Conflict between financial statement users and auditors often arises because of the
A)high cost of performing an audit.
B)extremely technical vocabulary auditors use in their reports.
C)placement of the auditor's report in the back of the client's annual report,where it is hard to locate.
D)expectation gap.

Question

Quizplus · Accepted Answer

The expectation gap refers to the difference between what the users of financial statements expect from an audit and what auditors are able to deliver. Users may expect auditors to provide absolute assurance that financial statements are completely free from error, fraud, or misrepresentation, which is not possible given the nature of auditing. This gap often leads to conflicts between financial statement users and auditors.

Conflict Between Financial Statement Users and Auditors Often Arises Because