Home Work 4

Which party would have the most interest in monitoring blogs and social media to assess the probability of the collectibility of bad debts?

Company accountant

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 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: 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

The analysis needed to address the question, 'Did return on assets improve or decline last year?', is _____ analysis.

descriptive

The analysis needed to address the question, 'Did we make a profit last year?', is _____ analysis.

descriptive

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

narrow

The AMPS model is performed ______ .

once or many times to address questions.

Classification and regression are specific types of ______ analysis employed.

predictive

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

predictive

A study from McKinsey Global Institute estimates that Big Data could generate up to $____ trillion in value per year in just a subset of industries impacted.

3

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

90

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

Decision making

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

Extract, Transform, and Load

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

Knowledge of audit data standards

Descriptive analysis addresses which of the following questions?

What happened?

Diagnostic analysis addresses which of the following questions?

Why did it happen?

Addressing the question, 'Why did advertising expense increase, but sales increase', is an example of _____ analysis.

diagnostic

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

share the story

According to the textbook, audit data standards include all but the following benefits to accountants and auditors.

Is less expensive to implement and use.

According to the textbook, audit data standards include all but the following benefits to accountants and auditors.

Is useful for those preparing tax returns

According to the textbook, audit data standards include all but the following benefits to accountants and auditors.

Lends itself to analysis by managerial accountants seeking to lower costs

The first step in the AMPS model is to _____.

ask the question

Addressing the question, 'Why did sales, general and administrative expense increase relative to the industry', is an example of _____ analysis.

diagnostic

Looking for anomalies and outliers are specific types of ______ analysis employed.

diagnostic

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

American Institute of Certified Public Accountants

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

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

The analysis needed to address the question, 'Can we forecast whether the company will have a profit next year?', is _____ analysis.

predictive

The analysis needed to address the question, 'Will these financial statements need to be restated?', is _____ analysis.

predictive

The analysis needed to address the question, 'How can revenues be maximized if our employees go on strike?', is _____ analysis.

prescriptive

The analysis needed to address the question, 'What level of sales is needed to breakeven?', is _____ analysis.

prescriptive

According to the textbook, companies are empowered by using data analytics to do all but the following:

prevent fraud