You have decided to use regression analysis in your analytical audit of sales commission expense. Using the monthly balances of the prior three years’ amounts of sales (independent variable) and sales commission expense (dependent variable), you computed a regression equation of Y{ = 6.43 + .07AT; and an r2 of .85. With this information, predict sales commission expense for each month of the current year based on the following current-year data. Indicate the months, if any, that you would investigate further and what procedures you would apply.

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Month Jan. Sales $1,842,000 1,825,000 Sales Commissions $127,000 Feb. 121.000 Mar. 1,939,000 138,000 Apr. 2,142,000 154,000 May 1,842,000 141.000 June 1,960,000 150.000 July 2,149,000 152,000 Aug. 2,415,000 180,000 Sept. 2,561,000 151,000 Oct. 2,352,000 176,000 Nov. 2,423,000 195,000 Dec. 1,796,000 156.000