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Can you give an example of Structural Modeling technique

Auditing

Of Analytical procedures? In the book it is given linear regression, which i did not understand. Can you give another example?

Kumarjit Dey

CA Inter

★ 4K+

02-Dec-20 02:30

313

Answers (2)

Best Answer

It could be a trend line analysis. Regression analysis analyses two variables and establishes relationship between them. For e.g. relationship between total cost and number of units. Total cost is dependent variable and units are independent variable. TC = FC + VC x No of Units.