In a recent audit, you tested 15% of transactions. The uninformed public believes that auditors test 60% of transactions, but those with an understanding of the audit process expect 40% testing. Auditing standards require 25% testing. Which of the following statements is true?

Question 5Answer

a.

The expectation gap is 45%, of which 20% are deficient standards

b.

The performance gap is 35%

c.

The expectation gap is 55%, of which 15% are deficient standards

d.

The gap due to deficient performance is 10%