Question

Which of the following is depicted when the auditor simply considers his or her own incentives, such as audit fees, sampling costs, and penalties?

1) Higher-order reasoning
2) Zero-order reasoning
3) First-order reasoning
4) Deductive reasoning

Answer 1

The correct answer is 2) Zero-order reasoning.

Step-by-step explanation:

The correct answer to your question is 2) Zero-order reasoning.

Zero-order reasoning refers to a decision-making process where the auditor only considers their own incentives, such as audit fees, sampling costs, and penalties. This type of reasoning is focused on immediate personal gains and does not take into account broader implications or ethical considerations.