ABSTRACT
This chapter examines the differences between correlations and regressions as well as the auditor's usage of both. It focuses on determination of the type of situation in which correlations and linear regressions may be deemed appropriate. Trend analysis is used to measure whether the data in a selected numeric field is showing an upward or downward trend over time and then to fit the best-fitting straight line to the data to forecast values into the future on the assumption that the trending pattern will continue. Trend analysis can be used to help improve the organization by In choosing data on which to conduct trend analysis, it is often useful for the auditor to examine the organization's key performance indicators (KPIs) in order to determine the factors that drive the achievement of organizational objectives. Correspondence analysis is a technique for graphically displaying a two-way table by calculating coordinates representing its rows and columns.
