Answer
(b)
Work Step by Step
(b) what the public thinks accountants should do and what accountants think they can do.
Generally whenever a huge financial market crisis is unearthed the public focuses on the responsibility of accountants in providing the audited statements. However, the role of auditors is limited to the information provided to them and ensuring that all the accounting standards and principles are adhered to.
The public or external parties also sometimes argue that the information disclosed in the audited financial statements is insufficient to make any informed decision as more details are required. This gap between the expectations of the public as to what is the role of accountants and actual practice of what accountants do varies which is called as the "Expectations Gap".
