Whenever an Auditor Compares Client Data to Client-Prepared Budgets, There

question 33

Multiple Choice

Whenever an auditor compares client data to client-prepared budgets, there are two special concerns.Indicate if the two items below are concerns.

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Definitions:

Covariances

Covariances are measures that indicate the extent to which two random variables change in tandem. A positive covariance indicates that two variables tend to move in the same direction.

Regression Analysis

A numerical approach for analyzing the correlation between a dependent variable and one or more independent variables.

Descriptive Statistics

Statistics that summarize or describe the characteristics of a data set, including measures like mean, median, mode, and standard deviation.

Standard Error

The standard deviation of the sampling distribution of a statistic, commonly the mean, providing a measure of the precision of the estimated mean.