ABSTRACT
Despite its introduction to the auditing profession more than 50 years ago and its prevalence in academic literature, regression analysis has not been widely taught in auditing courses. With auditing firms now able to access a client’s entire general ledger, regression analysis has become a powerful analytical tool. We have found that incorporating an example of regression analysis when introducing data analytics and analytical procedures to students provides an opportunity to review statistical concepts and nonstatistical considerations. Student feedback indicates that reviewing these concepts in a relevant audit application enhances their understanding of statistical analysis concepts, terminology, and application. Additionally, students develop an appreciation for regression analysis as a valuable analytical tool.
