An issue that may affect a regression analysis used by an auditor as part of audit data analytics is _______.
A)materiality
B)seasonality
C)faithful representation
D)uniformity

Question

Quizplus · Accepted Answer

Seasonality can affect the regression analysis used by an auditor in audit data analytics. Seasonality refers to the fluctuations in data that occur at regular intervals within a year or other period, and if not accounted for, can lead to inaccurate conclusions from the regression analysis. Materiality relates to the significance of transactions or items, faithful representation relates to the accuracy and completeness of financial information, and uniformity refers to consistency in accounting policies and presentation. While these concepts are important in auditing, they are not directly related to the issue of regression analysis and seasonality.

An Issue That May Affect a Regression Analysis Used by an Auditor