Users of financial statements have a different perception concerning the nature of auditors' services than the actual objectives of an audit.This difference is known as
A) Diverse liability perception.
B) Reasonable foreseeable third parties.
C) Insurance hypothesis.
D) Expectations gap.

Question

Quizplus · Accepted Answer

The difference between users' perception of auditors' services and the actual objectives of an audit is known as the expectations gap. This gap is characterized by the difference between what users believe auditors are responsible for and what auditors are actually responsible for performing during the audit process.

Users of Financial Statements Have a Different Perception Concerning the Nature