Wit appears in Andersen sequence (5)
I believe the answer is:
sense
'wit' is the definition.
(thesaurus)
'in andersen sequence' is the wordplay.
'in' says the answer is hidden in the clue.
'SENSE' is hidden in the letters of 'andersen sequence'.
'appears' is the link.
(Other definitions for sense that I've seen before include "Practicality, often common (5)" , "Could be hearing" , "Meaning; perception" , "Purport" , "Smell, say" .)