Perform the following as part of the 2022 audit of G&J Airlines. The dependent variable is salaries
Question:
Perform the following as part of the 2022 audit of G&J Airlines. The dependent variable is salaries and wages expenses. You should determine which independent variable(s), if any, are appropriate from the data set provided.
a. Plan an ADA as a risk assessment procedure that uses regression to investigate salaries and wages payable.
b. Prepare the data for your ADA.
c. Document the relevance and reliability testing that would need to be performed for this ADA to be effective and efficient. Assume all tests are satisfied.
d. Perform your planned regression analysis using the six steps outlined in “Regression Analysis.” Looking for Notable Items.
e. Create a visualization to describe the results of the ADA and evaluate the results of the ADA.
f. Recommend procedures that should be taken because of your findings in (e).
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a Historical data prior to the financials to be audited 2022 is used to develop a linear regression model that predicts quarterly Salaries and Wages Expense for 2022 These predictions represent the au...View the full answer
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