Regression analysis
7.3 Regression analysis
Based on Table 3, the adjusted R² value for Model 1 (general standard) is 1.000. This indicates that there is a very high degree of goodness of fit of regression model. On the other hand, it means that 100 per cent of variance in the dependent variable can be explained by regression model. The study also reveals that the adjusted R² value for Model 2 (works standard) is 0.927. This result indicates that the data almost fits to 100% with the model. Whereas on the Model 3 (reporting standard), the adjusted R² value of 0.933 indicates that there is a high degree of goodness of fit of regression model. It also means that over 90 per cent of variance in the dependent variable can be explained by regression model.
Table 3 Regression analysis
Significant predictors of intention to start a business: Stepwise regression
Beta
Sig.
(Constant) 1.000 Academic qualification
Training needs
Minimum supervision
Model 1 Understanding policies and accounting std
(general standard) Organizational independent 0.310 0.000
Adjusted R² = 1.000 Individual independent
(p = 0.000) Types, quality and quantity of audit evidences
Collecting and evaluating audit evidences
Reporting the audit finding
Directive, supervising and review of works
Review annual programmed 0.281 0.000 (Constant) 1.000 Planning works, steps and procedures
Preparing annual audit programmed bi-annual
Preparing memorandum of audit plan
Designing supervision schedule 0.266 0.000
(works standard) Supervising and coaching subordinate
Do rechecking
Adjusted R² = 0.927 Recommending internal control of financial audit
(p = 0.000) Recommending internal control of performance audit
Complying law and rules
Designing procedure of fraudulence and illegal action
Ensuring adequacy of audit evidences
Keeping audit evidences
(to be continued)
Developing the school financial audit model
Maintaining database for audit evidence
Checking and analyzing audit evidences
Ensuring accuracy, completeness and
consistency of financial statement
Ensuring the scope and purpose of expenditure
Ensuring the completeness of extra ordinary items
(Constant) 1.000 Complying Audit Acts 1957
Preparing performance audit
Reporting audit outcome
Stating audit standard
Ensuring clear, accurate, consistence, material,
Model 3 significant of reporting constant
(reporting standard) Presenting the objectivity and constructively of
Adjusted R² = 0.933 findings 0.000 (p = 0.000)
Issuing balance audit report
Distributing report
Stating fair and view statement
Practicing professional judgment regarding
accounting principles
Identifying event after balance sheet date
Reporting events that influence financial statement
Based on Table 4, the analysis reveals that the independent variables can be ranked from the highest factor to the very weak influencing the score of general standard. It can be concluded that the top 3 are “reporting the audit finding” (Beta = 0.337), “training needs” (Beta = 0.333) and types, quality and quantity of audit evidences (Beta = 0.328).
Table 4 General standard score and its rank
Coefficients a Model 1
(Constant) Rank Factors
Standardized coefficients (Beta)
1 Reporting the audit finding
2 Training needs
3 Directive, supervising and review of works
4 Organizational independent 0.310 5 Collecting and evaluating audit evidences
6 Individual independent
7 Review annual programmed
8 Minimum supervision level
9 Understand policies and accounting std
10 Academic qualification
11 Types, quality and quantity of audit evidences
Note: a: Dependent variable is general standard.
According to Table 5, the analysis reveals that the independent variables can be ranked from the highest to the very weak factor in influencing the works standard score. The result shows that the top 3 are “preparing annual audit programmed bi-annual” (Beta = 0.290), “ensuring the scope and purpose of expenditure” (Beta = 0.333) and
Developing the school financial audit model
“preparing memorandum of audit plan” (Beta = 0.266).
Table 5 Works standard score and its rank
Coefficients a Model 2 (Constant) Rank Factors
Standardized coefficients (Beta) 1 Preparing annual audit programmed bi-annual
2 Ensuring the scope and purpose of expenditure
3 Preparing memorandum of audit plan
4 Preparing annual audit plan
5 Maintaining database for audit evidence
6 Keeping audit evidences 0.231 7 Recommending internal control of performance audit
8 Checking and analyzing audit evidences
9 Designing procedure of fraudulence and illegal action
10 Designing supervision schedule
11 Complying law and rules
12 Supervising and coaching subordinate
13 Planning works, steps and procedures
14 Ensuring adequacy of audit evidences
15 Recommending internal control of financial audit
16 Ensuring accuracy, completeness and consistency of financial statement
17 Do rechecking 0.175 18 Ensuring the completeness of extra ordinary items
Note: a: Dependent variable is works standard.
Same as above, based on Table 6, the analysis reveals that the independent variables can be ranked from the highest factor to the very weak influencing the score of reporting standard. It can be concluded that the least 3 are “stating fair and view statement” (Beta = 0.192), “practicing professional judgment regarding accounting principles” (Beta = 0.220) and “presenting the objectivity and constructively of findings” (Beta = 0.223).
Table 6 Reporting standard score and its rank
Coefficients a Model 3 (Constant)
Rank Factors Standardized coefficients (Beta) 1 Ensuring clear, accurate, consistence, material, significant of reporting constant
2 Distributing report 0.393 3 Preparing performance audit
4 Reporting audit outcome 0.317 5 Issuing balance audit report
6 Reporting events that influence financial statement
7 Complying Audit Acts 1957
8 Identifying event after balance sheet date
9 Stating audit standard 0.265 10 Presenting the objectivity and constructively of findings
11 Practicing professional judgment regarding accounting principles
12 Stating fair and view statement
Note: a: Dependent variable is reporting standard.
Developing the school financial audit model