Para 2.1.20 — MSO

2.1.20 Regression analysis: This is a statistical technique that creates an equation to reveal how one variable is related to one or more other variables. It is similar in principle to predictive analysis but has added mathematical rigor and objectivity. It is generally used in the execution stage. It requires understanding of the statistics of complex variables and is therefore not “user-friendly” to the general auditor. It also requires much time for application and testing and is therefore mostly used infrequently.