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Stateside External Auditors are currently conducting the audit of Safeway Enterprises; a large, decentralized client with seasonal variations in revenue and operations throughout the United

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Stateside External Auditors are currently conducting the audit of Safeway Enterprises; a large, decentralized client with seasonal variations in revenue and operations throughout the United States. As part of their risk assessment procedures, Stateside has decided to utilize a regression analysis in order to analyze Safeway's revenue accounts. Regression analysis is well suited to an investigation of this nature because: (Select all that apply.) The prediction equation generated by the regression analysis will ensure that all unacceptable variations are removed from the analysis to ensure the robustness of the statistical test. Regression analysis can help the auditor discover anomalous items which may be worthy of further investigation. Regression analysis can incorporate the seasonality of the client's business into the prediction equation. Regression analysis can be used as a substitute for other, more time-consuming substantive procedures

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