Accounting Multiple Choice Question – 20 October 2025

Which ONE of the following describes a manifestation of the expectations gap?

Select ONE answer:

1. Users are discovering that the directors refuse to cooperate in providing the auditor with the evidence he requests
2. Shareholders approve the appointment of the auditor at an annual general meeting
3. Users are blaming the auditors for a fraud discovered in a company after an audit has taken place
4. Users do not just rely on the audited financial statements as a fair valuation of the company

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct => The responsibility for preventing fraud primarily lies with company management, including the CEO and CFO, who must ensure accurate financial reporting and establish strong internal controls. Additionally, the Board of Directors and the Audit Committee play crucial roles in overseeing management and ensuring an ethical corporate culture.
4. Not correct

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