What Are the Most Important Attributes That an Auditor Must

question 3

Multiple Choice

What are the most important attributes that an auditor must possess in testing client's assessment of goodwill?

• A)Expertise in the laws surrounding mergers and acquisitions and the legal implications of such endeavors.
• B)Sound judgment and a knowledge of the client's business and the related accounting principles.
• C)Trustworthiness in attitude and a loyalty to the client as its business advisor.
• D)Experience with business failures and audit scandals so that such issues can be brought to the table.

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Definitions:

Perceptual Adaptation

Perceptual adaptation is the ability of the body or brain to adjust to an altered perceptual environment, allowing for maintained performance despite changes.

Size Constancy

The perceptual phenomenon where the perceived size of an object remains constant despite changes in the distance or size of the image on the retina.

Restored Vision

The return of sight or improvement in vision that may occur naturally or through medical intervention after a period of impairment or loss.

Perceptual Set

A predisposition to perceive things in a certain way, based on expectations, experiences, and context.