Porters research into the differences between what society expects of statutory auditors and what statutory auditors actually deliver gave rise to the Audit Expectation Performance Gap.

a) Discuss the significance of this research and explain the components of the Audit Expectation Performance Gap, giving two practical examples of each component.

[20 marks]

b) Briefly state whether or not you believe the Audit Expectation Performance Gap can ever be eliminated, explaining the main reason (one) for your opinion.

[5 marks