Chapter 1 Connect MC Problems

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

transparency

Which would not be considered as one of the seven skills that analytic-minded accountants should have?

Ability to house huge data sets

Asking colleagues what they think of the analysis would be considered to be part of which stage of the IMPACT cycle.

Address and Refine Results

Financial accounting often has challenges with valuation and estimates in all but the following area:

Cash

___________________ data might be used to address many of the questions facing financial reporting.

Internal and external

After "Identifying the Question", the next step in the IMPACT cycle is to:

Master the data

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

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

Stay engaged with clients beyond the audit

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

help companies refine their operations

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

Slicing and dicing the data, finding correlations, revising and rerunning the analysis would be considered to be part of which stage of the IMPACT cycle.

Address and Refine Results

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

What process involves the technologies, systems, practices, methodologies, databases, statistics, and applications used to analyze diverse business data to give organizations the information they need to make decisions?

Data Analytics

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

Master the Data

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

Patterns

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

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

T

A digital dashboard would be part of which step of the IMPACT cycle?

Track Outcomes

The 3 V's describing Big Data include: Velocity, Variety and ________________.

Volume

An attempt to assign each unit (or individual) in a population into a few categories would be called the _____________ approach.

classification