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The Audit Expectations Gap
Auditing has developed from what, in the twelfth century, was primarily a check of the accounting for stocks and revenues by authorised officers of the Exchequer of England, into a sophisticated professional assurance service performed by independent accountants for the interests of their clients and other users of financial information . But what motivates people to enlist the services of an auditor? In explaining why the demand for the auditor is so varied, the academic Wallace identified a three tier hypotheses of Stewardship, Information and Insurance. Thus viewing the audit in the…
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