Question

The audit expectation gap can be reduced by all of the following EXCEPT?

1) auditors performing their duties appropriately
2) auditing standards being reviewed and updated on a regular basis
3) assurance providers reporting accurately the level of assurance being provided
4) auditors offering discounting fees for low risk audits

Answer 1

While performing duties appropriately, updating auditing standards regularly, and accurately reporting assurance levels can reduce the audit expectation gap, offering discounted fees for low risk audits would not, as it could compromise the perceived independence of the auditor.

Step-by-step explanation:

The audit expectation gap refers to the difference between what the public expects from the auditing profession and what the auditing profession actually provides.

To reduce the audit expectation gap, certain measures can be taken such as auditors performing their duties appropriately, auditing standards being reviewed and updated on a regular basis, and assurance providers reporting accurately the level of assurance being provided. However, auditors offering discounting fees for low risk audits is not likely to reduce the audit expectation gap as it could potentially compromise the perception of the auditor's independence and thoroughness, and does not necessarily align with the public expectation of an audit's role.