The Auditor May Choose to Speak to the Previous Audit

question 27

True/False

The auditor may choose to speak to the previous audit firm before accepting a prospective public client in order to better understand the conditions surrounding the change in auditors but it is not required.

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Definitions:

Frequency Distribution

A statistical tool that shows how often each different value in a set of data occurs.

Linear Regression Equation

The mathematical expression that represents the linear relationship between a dependent variable and one or more independent variables in linear regression.

Fahrenheit Degrees

A temperature scale where the boiling point of water is 212 degrees and the freezing point is 32 degrees.

Correlation Coefficient

Represented by r, it is a number between −1 and 1, inclusive, that is used to judge how closely a line fits the data.