Note: In auditing practice we would typically set the intercept to zero, but in this example—just to illustrate how regressions work—we let the model calculate it. The result is an intercept of 30, which represents the baseline level of 20X2 Sales when all predictors (i.e., independent variables) are zero. Importantly, it's the deviations from that baseline—that is, the residuals—that auditors focus on to flag potential misstatements.