Audit failure and the expectations gap

In this lesson

1. 0:00 Audit failure and corporate collapse
2. 0:23 Defining audit failure with Patisserie Valerie
3. 1:12 When company collapse isn't auditor negligence
4. 2:19 Understanding the expectations gap
5. 3:33 Narrowing the gap through education and engagement
6. 4:18 Expanding audit scope and responsibilities
7. 5:02 Inherent limitations and sampling risk
8. 6:06 Closing the knowledge gap in practice
9. 7:00 Future evolution of audit standards

About this lesson

You'll explore real-world examples like Patisserie Valerie to see how auditor negligence differs from company collapse, and discover why the public often misunderstands what auditors actually do. The video covers the key definition of the expectations gap, practical ways to narrow it through better communication and expanded audit scope, and the inherent limitations auditors face—including sampling risk and the complexity of detecting fraud. You'll also examine current discussions around evolving audit standards to address fraud detection and going concern assessment, equipping you with the knowledge to discuss this topic confidently in your exams.

Duration: 13m