Chapter 10 - Intro to Data Analytics in Acctg

Data analytics professionals spend up to BLANK% of their time cleaning data for analysis?

90

According to estimates considered in the chapter, up to what percentage of a data analyst's time is spent cleaning (or scrubbing) the data to be ready for analysis?

90 percent

Audit data standards were developed by the following party to facilitate audits.

American Institute of Certified Public Accountants

The first step in the AMPS model is to BLANK.

Ask the question

!!! ADS is a standard format for data files and fields typically needed to support an external audit in a given financial business process area that was developed by the AICPA. The acronym ADS stands for what three words?

Audit Data Standards

Which term is used to describe the science of examining raw data, removing excess noise from the dataset, and organizing the data with the purpose of drawing conclusions for decision making?

Data Analytics

The data analytics skill sets that should be developed are all but the following:

Decision making

What type of analysis addresses questions of "Why did it happen"?

Diagnostic analysis

ETL stands for which process for scrubbing raw data to make it ready for analysis?

Extract, Transform, and Load

The acronym ETL, in the process of readying data for use in data analysis, refers to what three words?

Extract, transform, and load

!!! True or false: Data analytics allows auditors to vastly expand sampling beyond current traditional sample sizes, but does not allow the ability to test the full population of transactions.

False

True or false: Audit data standards are a set of data standards in preparation for the internal audit.

False

True or false: Audits do not provide value beyond the financial perspective and providing assurance.

False

True or false: Data analytics comes up with computer algorithms that make decisions automatically without human intervention.

False

True or false: In general, data analytics requires the auditor to pull data at the client site before an external audit is completed.

False

According to the textbook, audits are expected to provide all but the following above and beyond the assurance perspective.

Help companies reduce future audit fees

The more BLANK the question is, the better chance it has of being answered.

Narrow

Forecasting whether a company will go bankrupt is an example of BLANK analysis.

Predictive

What type of analysis would address the question of whether a customer will ultimately pay if credit is granted?

Predictive analysis

Addressing the question, "What should we do, based on what we expect will happen" is an example of BLANK analysis.

Prescriptive

If we wanted to know what grade we needed to get on the final in this class based on our expected performance before the final, we would call that BLANK analysis?

Prescriptive

The "S" in the AMPS model stands for BLANK.

Share the story

True or false: Auditors may monitor blogs and social media to assess the probability of a goodwill write-down.

True

True or false: Business intelligence allows firms to monitor competitors, customers and suppliers.

True

True or false: Data analytics is defined as the science of examining raw data (now often Big Data), removing excess noise from the dataset, and organizing the data with the purpose of drawing conclusions for decision making.

True

True or false: Data analytics is useful for a business to examine patterns and trends in large datasets.

True

True or false: The phrase "Your data won't speak unless you ask it the right data analysis questions" really speaks to the expertise the accountant can offer by asking questions that are answerable by data.

True

Which type of question does descriptive analysis address?

What happened?

Which type of question does prescriptive analysis address?

What should we do based on what we expect will happen?

!!! Big Data is often described by the 4 Vs, or:

volume, velocity, veracity, and variety.