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Reasonableness Gap
Find out more about reasonableness gap.
Reasonableness Gap
Reasonableness gap: The gap between what society expects the auditors to achieve and what they can be reasonably expected to accomplish.
- Users unreasonable expectations regarding auditors’ responsibilities
- Unreasonable expectations are those where the cost to the auditor of fulfilling the expected responsibility would outweigh any benefit attained by the user.
Examples
- Expecting an auditor to prepare the company’s financial statements is unreasonable because it compromises auditor independence (Porter et al., 2012).
- Expecting the auditor to provide a guarantee regarding the accuracy of financial statements or the financial condition of the company (Porter et al., 2012).
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