Which of the Following Statements Describes the Expectations Gap as It

Multiple Choice

Which of the following statements describes the expectations gap as it relates to audited financial statements?

A) Investors believe that an unqualified audit report guarantees that an investment in the audited company is risk- free.
B) Investors believe that an unqualified audit report is an insurance policy against losses from a risky investment.
C) Investors believe they are entitled to recover losses on investments for which the auditor provided an unqualified opinion on the financial statements.
D) All of the above.