Answer the following questions.
A. Discuss the main components of the audit expectation gap in the capital markets.
B. During the audit of LDF Co’s bad debt provision, the auditor discovered that £500,000 of costs included in the provision did not meet the criteria for inclusion based on the applicable accounting standards.
1. Discuss the differences between the modified and unmodified audit reports.
2. Discuss the above issue and describe the impact of this issue on the auditor’s report, if any, should this issue remain unresolved.
Discuss the above statement by explaining the differences between the evidence’s sufficiency and appropriateness.
