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Artisticrush (talk | contribs) →Linear regression: Adding findings from a scholary journal, the edit improves the description of linear regression in the context of model accuracy by adding independent variables and emphasizing MLP for comprehensive modeling. |
Artisticrush (talk | contribs) →Applications: The added line emphasizes the crucial role of adapting analytical procedures to specific datasets, acknowledging the evolving nature of financial scrutiny highlighted by auditing standards. |
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The STAR methods operate using regression analysis, and fall into two methods. The first is the STAR monthly balance approach, and the conditional expectations made and regression analysis used are both tied to one month being audited. The other method is the STAR annual balance approach, which happens on a larger scale by basing the conditional expectations and regression analysis on one year being audited. Besides the difference in the time being audited, both methods operate the same, by comparing expected and reported balances to determine which accounts to further investigate.<ref name=":3" />
Furthermore, the incorporation of analytical procedures into auditing standards underscores the increasing necessity for auditors to modify these methodologies to suit particular datasets, which reflects the ever-changing nature of financial examination.<ref>{{Cite journal |last=Wilson |first=Arlette C. |date=1991 |title=Use of Regression Models as Analytical Procedures: An Empirical Investigation of Effect of Data Dispersion on Auditor Decisions |url=http://journals.sagepub.com/doi/10.1177/0148558X9100600307 |journal=Journal of Accounting, Auditing & Finance |language=en |volume=6 |issue=3 |pages=365–381 |doi=10.1177/0148558X9100600307 |issn=0148-558X}}</ref>
=== Business Value ===
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