Assume you were reading an article on the auditing profession in a professional accounting magazine that included terms such as independence and auditors’ responsibilities. It also noted that there was a large standards expectation gap between auditors and users of financial statements.

1 What is meant by independent assurance?

2 Give some examples of lack of independence.

3 What does the ‘Expectation Gap’ refer to?

4 How do management’s and auditors’ responsibilities differ?

5 Why is the integrity of management important to the financial reporting process?