Question 1 The purpose of the Auditing and Assurance Standards Board is: a. to p

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Question 1 The purpose of the Auditing and Assurance Standards Board is: a. to promote high-quality audits. b. to set the educational requirements for the Chartered Professional Accountant designation. c. to regulate capital markets. d. to set high-quality auditing and assurance standards. Artswr Question 2 The audit expectation gap occurs when: a the public is well educated about auditing. b auditors perform their duties appropriately and satisfy users'demands. c. user beliefs do not align with what an auditor has actually done. d. peer reviews of audits ensure that auditing standards have been applied correctly and the standards are at the level that satisfies users' demands. Answer: Question 3 The expectation gap is caused by unrealistic user expectations such as the auditor providing a moderate level of assurance. a. True b. False Answer:

Explanation / Answer

Question 1) option (d) to set high quality auditing and assurance standards

Explanation : the purpose of auditing and assurance standards board is to set high quality auditing and assurance standards. It provides high quality international standards for better improvement in audit area. It gives improvement measure also.

2) option ( c) user beliefs do not align with what an auditor has actually done.

Explanation : the audit expectation gap occurs when the users do not align with what an auditor gas actually done. It is the difference between the expectations of assurance providers and the users of financial reports.

3) option (a) true

Explanation : the audit expectation gap occurs because of the unrealistic expectations of the public or users of financial statements

Such statements examples are as follows

1) they expect that the author provide complete information

2)the auditor guarantee the future viability to the business entity.

3)they expect they do not commit the fraud. Etc.

Question 4) option (d) internal auditor

Explanation : the internal auditor is an employee of the company who always evaluates the efficiency of the business organization. He provides risk management procedures, internal control, and some governance issues. He checks all the financial reports and give suggestions for improvement.

Question 5) option( a) assurance providers and the financial statements users.

Explanation : the audit expectation gap is the difference between the assurance providers and users of financial statements. It occurs when there is a mismatch between the expectations of users and what has given by the auditors.

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