The adoption of which of following measures would reduce the expectations gap and lessen public misunderstanding of the auditor's role?

Question

Quizplus · Accepted Answer

Both publishing a statement of management responsibility and expanding the audit report to clarify the auditor's role and the level of assurance would help to close the expectations gap and reduce public misunderstanding of the auditor's role. The statement of management responsibility would help to clarify what responsibilities are held by management in the financial reporting process, while the expanded audit report would give a clearer picture on what the auditor has done and what level of assurance they can provide. Reporting annually to the audit committee and implementing other measures may also help, but they are not as effective as the combination of publishing a statement of management responsibility and expanding the audit report.

The Adoption of Which of Following Measures Would Reduce the Expectations