Regression Analysis _______

question 6

Multiple Choice

Regression analysis _______.

• A)comes in many forms, including simple linear regression analysis
• B)is rarely used in auditing, as it is too complex
• C)is best performed by the internal audit function
• D)should only be conducted with a data-set vetted and approved by management

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Definitions:

Business Cycle

Recurring increases and decreases in the level of economic activity over periods of years; consists of peak, recession, trough, and expansion phases.

Corporate Profits

The surplus income of corporations after paying all expenses, including operational expenses, salaries, and taxes.

Resource Suppliers

Entities or individuals that provide the inputs needed by firms to produce goods and services, such as labor, raw materials, and components.

Capitalist Income

Income earned from the ownership of capital or investments, typically in the form of profits, interest, and dividends.