The senior staff accountant was conducting an audit of a bank customer. During the audit, the necessary management accountant, check reports the sum of interest expense and income by the Bank during the year 2004. He had data on total interest income and expenses of the Bank reports, as well, such as the prime rate of the Bank of Canada reports gathered. The staff accountant will use linear regression to examine the relationship between income and interest rates, and b … Read more »

The senior staff accountant was conducting an audit of a bank customer. During the audit, the necessary management accountant, check reports the sum of interest expense and income by the Bank during the year 2004. He had data on total interest income and expenses of the Bank reports, as well, such as the prime rate of the Bank of Canada reports gathered. The staff accountant will use linear regression to examine the relationship between income and interest rates and between expenses and interest as a way of identifying outliers, the detailed attention as part of the examination may require.
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Gregory S. Zaric
Source: Ivey Publishing
6 pages.
Release date: 06 February, 2006. Prod #: 906E05-PDF-ENG
Ernst & Young: The Western Bank Audit HBR case solution