An auditor adjusts the audit plan by introducing unexpected audit procedures in response to what the auditor believes management may be doing to conceal a fraud based on management's strategic reasoning. Which order of reasoning is occurring here?
a. Low-order reasoning
b. Zero-order reasoning
c. Higher-order reasoning
d. First-order reasoning
c
FEEDBACK: a. Incorrect.
b. Incorrect.
c. Correct. Higher-order reasoning occurs when the auditor considers additional layers of complexity, including how management may anticipate the auditor's behavior.
d. Incorrect.
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