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Can you explain the term expectation gap?

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Question ajoutée par Frank Mwansa , ACCOUNTING LECTURER , FREELANCER
Date de publication: 2016/02/22
MAJID KHATTAK
par MAJID KHATTAK , Treasury Assistant , CERN (European Organization for Nuclear Resesarch)

There are two parties related to the Expectation Gap terminology;

  1. Stakeholders relying on particular Financial Statements
  2. Auditors reviewing that particular Financial Statements

There is always difference between auditor's opinion regarding their duties towards the stakeholders and expectations of those stakeholders regarding the auditor's duties. This gap between the expectations of these two parties is termed as expectation gap.

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