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:

Monthly Payment

A specified amount of money paid once per month, often related to loans or service subscriptions.

Equal Opportunity Act

A law designed to ensure that all individuals have a fair chance to participate in certain activities or obtain goods and services, without discrimination based on factors like race, gender, or ethnicity.

Fair Credit Reporting Act

The law that gives protection to a consumer in the case of errors on a monthly credit card statement; consumers are not responsible for a disputed amount or the finance charges that amount accrues, until the error is resolved.

APR

Annual Percentage Rate; a measure that reflects the cost of borrowing money or the return on an investment, including interest and other associated fees, shown as a yearly rate.