ACCT 3130, Learnsmart Chapter 1

Business Intelligence

The firm practice of monitoring competitors, customers, and suppliers to better understand its opportunities and threats is called

Investments in R&D (research and development).

According to the textbook, Data Analytics can be applied to taxes by helping to predict the tax consequences of a potential international transaction, a proposed merger or acquisition, or

Regression

An attempt to estimate or predict, for each unit, the numerical value of some variable using some type of statistical model would be called the ___ approach.

IMPACT cycle

Asking questions like "Are our customers paying us in a timely manner" would be the first step in which of the following processes?

Help companies refine processes

Audit firms are increasingly considering operational data such as manufacturing logs, customer relationship management data, and supply chain data primarily to

Big Data

Data sets that are too large and complex for businesses' existing systems to handle are called

Stay engaged with the client beyond the audit

In a significant paradigm shift, data analytics will allow auditors to:

Address and Refine Results

In which step of the IMPACT cycle do data analysts slice and dice the data, find correlations, ask ourselves further questions, ask colleagues what they think, and revise and rerun the analysis?

Track Outcomes

The "T" part of the IMPACT cycle stands for:

Enhance the quality, transparency, and accuracy of the audit.

The Forbes Insight/KPMG report, "Audit 2020: A Focus on Change.", found that the vast majority of survey respondents believe that technology will:

Clustering

Which testing approach would be considered to be an attempt to divide individuals (like customers) into groups (or clusters) in a useful or meaningful way?

Patterns

___ discovered from past archives enable businesses to identify opportunities and risks and better plan for the future.

Social Media

Data Analytics may use what source to assess the probability of a goodwill write-down, warranty claims, or the collectibility of bad debts?

Identify the questions

Due to its iterative nature, what comes next in the iterative IMPACT cycle after outcomes are tracked?

Master the Data

ETL (Extraction, Transformation, and Loading) would be an example of which step in the IMPACT cycle?

True

True or False: Data Analytics can impact Financial Accounting by helping evaluate estimates and valuations.

False

True or False: Data Analytics involves only the analysis of unstructured data.

True

True or False: Data analytics expands auditors' capabilities in services like testing for fraudulent transactions.

Become a data scientist

Which should not be considered as one of the seven skills that analytic-minded accountants should have? A) Data scrubbing and data preparation B) Become a data scientist C) Descriptive data analysis D) Recognizing quality data

Co-occurence Grouping

Which testing approach would be considered to be an attempt to discover associations between individuals based on transactions involving them?