ACCT 4800 - Chapter 1 Homework/SmartBook
Traditional audit approaches tested a ____ of the financial data transactions; in contrast, data analytics enables auditors to analyze ____ dataset.
(1) sampling (2) the complete
As part of mastering the data, data analysts perform data ____ to reduce data redundancy and improve data integrity.
normalization
An attempt to estimate or predict, for each unit, a specific dependent variable value using some type of statistical model would be called the ____ approach.
regression
The first step in the IMPACT cycle is:
Identify the Question
Match each specific Data Analytics test to a specific test approach, as part of performing a test plan: (1) Predict which firms will go bankrupt and which firms will not go bankrupt. (2) Use stratified sampling to focus audit effort on transactions with greatest risk. (3) Work to understand normal behavior, to then be able to identify abnormal behavior (such as fraud). (4) Look for relationships between related parties that are not otherwise disclosed. (5) Predict which new customers resemble the company's best customers. (6) Predict the relationship between an investment in advertising expenditures and subsequent operating income. (7) Segment all of the company's customers into groups that will allow further specific analysis. (8) The customers who buy product X will be most likely to be also interested in product Y.
(1) Classification (2) Data Reduction (3) Profiling (4) Link Prediction (5) Similarity Matching (6) Regression (7) Clustering (8) Co-occurrence Grouping
Match the specific analysis need/characteristic to the appropriate Microsoft Track software tool: (1) Basic visualization (2) Robotics process automation (3) Data joining (4) Advanced visualization (5) Works on Windows/Mac/Online platforms (6) Dashboards (7) Collect data from multiple sources (8) Data cleaning
(1) Excel (2) Power Automate (3) Power Query (4) Power BI (5) Excel (6) Power BI (7) Power Automate (8) Power Query
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?
Address and Refine Results
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?
Clustering
Which testing approach would be considered to be an attempt to discover associations between individuals based on transactions involving them?
Co-occurrence grouping
After data analysts slice and dice the data, find correlations, ask ourselves further questions, ask colleagues what they think, and revise and rerun the analysis, what comes next in the IMPACT cycle?
Communicate insights
Once the data has been analyzed and the results have been refined, what is the next step in the IMPACT cycle?
Communicate insights
Which Microsoft Track tool is most appropriate for working with small data sets?
Excel
After "Identifying the Question", the next step in the IMPACT cycle is to:
Master the data
Tax compliance deals primarily with filing tax returns. In contrast, tax planning primarily helps
Minimize the amount of taxes paid
Which testing approach would be considered to be an attempt to identify similar individuals based on data known about them?
Similarity Matching
Data Analytics may use what source to assess the probability of a goodwill write-down, warranty claims or the collectibility of bad debts?
Social media
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
investment in R&D (research and development)
As part of mastering the data, data analysts perform data ____ to provide a sense of the reliability of the data.
validation and completeness testing
Which would not be considered as one of the seven skill areas that analytic-minded accountants should have?
Becoming a data scientist
Management accounting tasks that might involve data analytics include which of the following?
Determining the cost of each job.
Scrubbing the data would be an example of which step in the IMPACT cycle?
Master the Data
The "T" as part of the IMPACT cycle stands for:
Track Outcomes
The description of the management accountant's task and that of the data analyst appear to be quite similar.
True
True or false: Data Analytics can impact Financial Accounting by helping evaluate estimates and valuations.
True
True or false: Data analytics expands auditors' capabilities in services like testing for fraudulent transactions.
True
Financial accounting often has challenges with valuation and estimation in all but the following area:
accounts payable
Financial accounting often has challenges with valuation and estimates in all but the following area:
cash
An attempt to assign each unit (or individual) in a population into a few categories would be called the ____ approach.
classification
The firm practice of monitoring competitors, customers and suppliers to better understand its opportunities and threats is called
data analytics