Final answer:
The correct answer is C. Predication. Predication refers to the circumstances, taken as a whole, that would lead a reasonable, prudent professional to believe a fraud has a occurred, is occurring, or will occur.
Step-by-step explanation:
The correct answer is C. Predication.
Predication refers to the circumstances, taken as a whole, that would lead a reasonable, prudent professional to believe a fraud has a occurred, is occurring, or will occur. It involves evaluating available information and indicators to determine if there is enough basis to suspect fraud.
For example, in the field of forensic accounting, professionals analyze financial statements and transaction records to identify any inconsistencies or red flags that may indicate the presence of fraudulent activities.