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Exam IIA-CIA-Part2 All Questions

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Exam IIA-CIA-Part2 topic 3 question 16 discussion

Actual exam question from IIA's IIA-CIA-Part2
Question #: 16
Topic #: 3
[All IIA-CIA-Part2 Questions]

What type of analysis is performed when an auditor tests for unusual variations in information by comparing the number of employees working at a factory site with the direct cost of production each month over a period of one year?

  • A. Trend analysis.
  • B. Ratio analysis.
  • C. Regression analysis.
  • D. Horizontal analysis.
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Suggested Answer: C 🗳️
by missCIA at Nov. 8, 2020, 2:05 p.m.

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missCIA
2 years ago
Why not Ratio analysis ?
upvoted 1 times
John1237
9 months, 1 week ago
Ratio establishes a proportion between amounts.
upvoted 1 times
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Thila
2 years ago
Ratio analysis is limited to one variable at a time, while regression analysis can work with all variables simultaneously. In this question, there are multiple variables being compared to (i.e. direct cost of production each month over a period of one year)
upvoted 2 times
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C (25%)
B (20%)
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