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.
You might also like to view...
All of the following are problems faced in International e-commerce, except:
A) cultural differences B) global shipping and infrastructure deficiencies C) varying degree of Internet capabilities D) population shifts within other countries
Logistics includes activities that govern the flow of tangible, physical materials through the supply chain such as shipping, transport, distribution, and warehousing.
Answer the following statement true (T) or false (F)
Steven Lake's responsibilities at Ford include educating customers, building goodwill for the firm, and providing follow-up service. Steven is a _____.
A. missionary salesperson B. trade salesperson C. technical salesperson D. sales support person E. creative order taker
Miguel gives Roberta land with an adjusted basis of $50,000 and an FMV of $40,000. No gift tax is paid. Roberta sells the land for $36,000. Roberta recognizes
A) no loss. B) a $4,000 loss. C) a $14,000 loss. D) none of the above