Test 4- Ch 17 & 18

What is the audit stage called that is focused on assessing the adequacy of internal controls, compliance, and business processes, including the performance of testing transactions, data, and other procedures necessary to accomplish the audit objectives? A. Audit fieldwork B. Information gathering C. Process walkthrough D. Design effectiveness

A. Audit fieldwork

The first step in analyzing a data set is learning about its data. Exploratory data analytics techniques reveal the key characteristics of a data set. Exploratory data analytics techniques help us identify three key factors of a data set. Which of the key factors is the descriptive components within a data set? A. Categorical values B. Quantitative values C. Patterns D. Anomalies

A. Categorical values

What type of values are the following? customer name, customer city, product description, shipping location. A. Categorical values B. Quantitative values C. Summary values D. Distribution values

A. Categorical values

What part of the story arc shows the results of the analytics that have been performed? A. Climax B. Resolution C. Rising action D. Introduction

A. Climax

Exploring a new data set and understanding its composition commonly involves the data analytics technique ________, which involves simplifying data to quickly identify the composition of categorical and quantitative values. We compress the data into smaller, easier-to-understand outputs, called data summaries. To do this, we typically group a data set by a specific field, or column. A. Data summarization B. Quantitative values C. Data summaries D. Field, or column

A. Data summarization

There are four widely used categories of data analytics. Which one tells us what has happened? A. Descriptive analytics B. Diagnostic analytics C. Predictive analytics D. Prescriptive analytics

A. Descriptive analytics

What type of data visualization technique would one use to illustrate how often a variable occurs in the data set? A. Distribution B. Relationships C. Comparison D. Composition

A. Distribution

Choose from the definitions below the best definition of geospatial analytics. A. Geospatial analytics is a technique that gathers, transforms, and visualizes geographic data and imagery B. Geospatial analytics is an analytics technique that visualizes relationships among participants in a data set to learn about the social structure those relationships create C. Geospatial analytics is data about activities in a system and includes the timestamp of when the activities occur D. Geospatial analytics uses data to show what individuals, systems, and machines are doing in a visual format

A. Geospatial analytics is a technique that gathers, transforms, and visualizes geographic data and imagery

Internal audit's primary purpose is to provide independent assurance that a company's risk management, internal controls, and ________ are effective. A. Governance processes B. Workpapers C. Audit canvas D. Management action plan

A. Governance processes

What is a design concept? A. Having a central idea that drives the design's meaning and tone B. Listing all of the visualization tools that will be needed for the design C. Making a visualization memorable to the audience D. Using many colors to draw the audience's attention

A. Having a central idea that drives the design's meaning and tone

Elijah works in a local coffee shop that sells baked goods. He is given a table that has the baked goods listed along the X-axis and the months of the year along the Y-axis. The table shows the profit that the baked goods made that month. Elijah wants to quickly spot which month the baked goods did the best, when all baked goods and months are considered. He thinks that adding some color to the table might help. What type of chart should he create? A. Heat map B. Pie chart C. Stacked bar chart D. Bar chart

A. Heat map

There are four widely used categories of data analytics. Choose the best description for descriptive analytics. A. Looks at historical data and condenses it into smaller, more meaningful bits of information B. Drills down to a granular level C. Provides powerful tools that assist in decision making and inform future actions D. Requires advanced programming

A. Looks at historical data and condenses it into smaller, more meaningful bits of information

There are four widely used categories of data analysis. Which two analyze historical data and predict future events, providing recommendations on what the business should do? A. Predictive and prescriptive B. Descriptive and prescriptive C. Descriptive and diagnostic D. Diagnostics and predictive

A. Predictive and prescriptive

Historically, auditors were divided into groups based on their expertise: operational or business auditors, financial auditors, and information technology (IT) auditors. Which of the following would be performed by an operational or business auditor? A. Sales and distribution B. Network infrastructure C. Change management D. Accounts payable

A. Sales and distribution

Which of the following best shows a relationship between two variables? A. Scatter plot B. Histogram C. Box plot D. Line chart

A. Scatter plot

What is a type of network analysis that investigates social structures on social media? A. Social network analysis B. Society network analysis C. Physical network analysis D. Social category analysis

A. Social network analysis

Data visualizations that tell stories A. present facts. B. Convey only bad news C. Avoid adding color to reports D. Avoid conveying messages

A. present facts.

What is also known as outlier analysis and reveals observations or events that are outside a data set's normal behavior? A. Exploratory data analytics B. Anomaly detection C. Categorical values D. Quantitative values

B. Anomaly detection

Emma performed analytics with accounting data. She wants to create a dashboard to present accounts payable metrics and include three charts. Which of the following is a chart Emma should create? A. Average days sales outstanding B. Average cost per invoice type C. Average age of employee D. Average call abandonment rate

B. Average cost per invoice type

Theo is an auditor who is looking at human resources (HR) metrics that the business tracks. There are four charts that he is auditing. He realizes that one of them does not belong with the theme of HR metrics. Which of the following metrics would be irrelevant to HR? A. Number of employees who leave the company B. Average payment processing time C. Total number of employees D. Average cost of hiring a new employee

B. Average payment processing time

Lina is creating visualizations that will present big ideas about the core functions of the business, such as accounting, finance, marketing, and sales. Who is most likely her visualization audience? A. Intern B. CEO C. Mid-level manager D. Staff accountant

B. CEO

Historically, auditors were divided into groups based on their expertise: operational or business auditors, financial auditors, and information technology (IT) auditors. Which of the following would be performed by an operational or business auditor? A. Security administration B. Corporate investments C. Payroll D. Disaster recovery

B. Corporate investments

Mirabel wants to create key performance indicators to help monitor for suspicious transactions by using an accounts payable data set. What can she use to present these key performance indicators if she wants to include many charts, in one view, which will be updated on a regular basis? A. Excel workbook B. Dashboard C. Database D. Infographic

B. Dashboard

Five data analytics-related job titles were discussed in the text. Which of the following job titles would need an expert understanding of data modeling? A. Data analyst B. Data scientist C. Business analyst D. Statistician

B. Data scientist

There are four widely used categories of data analytics. Which one tells us why something happened? A. Descriptive analytics B. Diagnostic analytics C. Predictive analytics D. Prescriptive analytics

B. Diagnostic analytics

There are four widely used categories of data analytics. Choose the best description for diagnostic analytics. A. Looks at historical data and condensed it into smaller, more meaningful bits of information B. Drills down to a granular level C. Provides powerful tools that assist in decision making and inform future actions D. Requires advanced programming

B. Drills down to a granular level

What part of the story arc presents suggestions for improvement or predictions of what may happen if the audience take certain actions? A. Rising action B. Falling action C. Climax D. Resolution

B. Falling action

The five stages of an audit include important audit activities and deliverables. Which of the following is the audit stage where the preliminary observations are delivered? A. Planning B. Fieldwork C. Wrap-up D. Reporting

B. Fieldwork

The five stages of an audit include important audit activities and deliverables. Which of the following is the audit stage where the sample selection is delivered? A. Planning B. Fieldwork C. Wrap-up D. Reporting

B. Fieldwork

Internal audit's primary purpose is to provide independent assurance that a company's risk management, ________, and governance processes are effective. A. Workpapers B. Internal controls C. Audit canvas D. Management action plan

B. Internal controls

What is a popular simulation that predicts the probability of different outcomes in the presence of many random variables? A. Forecasting B. Monte Carlo simulation C. A confidence interval D. Break-even analysis

B. Monte Carlo simulation

Choose from the definitions below the best definition of network analysis. A. Network analysis is a type of network analysis that investigates social structures on social media B. Network analysis is an analytics technique that visualizes relationships among participants in a data set to learn about the social structure those relationships create C. Network analysis uses data to show what individuals, systems, and machines are doing in a visual format D. Network analysis is data about activities in a system and includes the timestamp of when the activities occur

B. Network analysis is an analytics technique that visualizes relationships among participants in a data set to learn about the social structure those relationships create

Which type of chart divides the data into groups proportional to their size within a data set? A. Historical chart B. Pie chart C. Box plot D. Stacked bar chart

B. Pie chart

Milo, an accountant, is presenting sales data from the past quarter to the CFO. The sales were not good in the past quarter, as they severely missed the projections. He wants to be able to present the data in a way that the CFO will remember, since the CFO hears many presentations in a day. What should he focus on when presenting the bad news? A. Adding a lot of color B. Setting the tone of the visualization C. Providing the names of the salespeople who did not hit their sales goals D. Giving the CFO all the raw data behind the visualization

B. Setting the tone of the visualization

Consider the simple linear regression equation: Y = A + Bx What does x represent? A. The dependent variable B. The independent variable C. The y-intercept D. The slope of the line

B. The independent variable

Clustering, or cluster analysis, is an analytics technique that categorizes data points into groups based on their similarities. The groups, called clusters, are determined by the distance between individual items, which indicates how closely related the data points are. Clustering is an unsupervised Machine Learning (ML) technique in which the data input contains ________ data. A. Labeled B. Unlabeled C. Supervised D. Unsupervised

B. Unlabeled

What percentage of men have a color vision deficiency (CVD)? A. 12% B. 6% C. 8% D. 10%

C. 8%

Businesses like to use a ________ confidence interval when they perform forecasting. A. 25% B. 35% C. 95% D. 75%

C. 95%

The Institute of Internal Auditors (IIA) updated their three lines of defense model in 2020 to reflect the need for aligned assurance from various areas of a company. Which of the following is the best definition of aligned assurance? A. Aligned assurance evaluates whether the financial statements of the audited company are free from material misstatements and are presented in accordance with generally accepted accounting standards B. Aligned assurance employs rigorous independence checks to ensure that their opinions will be unbiased and that they do not have inappropriate ties to the client C. Aligned assurance focuses on ensuring that the second and third lines of defense are working cohesively to provide appropriate coverage over a company's risks. D. Aligned assurance is the systematic and independent review of data, information, records, and operations of a business to provide assurance of the effectiveness of

C. Aligned assurance focuses on ensuring that the second and third lines of defense are working cohesively to provide appropriate coverage over a company's risks.

Kira wants to use an icon to represent "savings." Which of the following icon choices would be the best visual cue? A. Checkmark B. Tree C. Bank D. Handshake

C. Bank

Which of the following identifies a maximum, minimum, median, and quartiles for every category that it charts? A. Pie chart B. Bar chart C. Box plot D. Histogram

C. Box plot

The known fixed costs are compared to the estimated variable costs to predict what? A. Forecasting B. A confidence interval C. Break-even analysis D. A simulation

C. Break-even analysis

Exploring a new data set and understanding its composition commonly involves the data analytics technique data summarization, which involves simplifying data to quickly identify the composition of categorical and quantitative values. We compress the data into smaller, easier-to-understand outputs, called ________. To do this, we typically group a data set by a specific field, or column. A. Data summarization B. Quantitative values C. Data summaries D. Field, or column

C. Data summaries

When you track your run on a smart watch, what type of analytics are you practicing? A. Process mining B. Network analysis C. Geospatial analytics D. Natural language processing

C. Geospatial analytics

Which type of chart focuses on the use of different colors to represent the values of the data set it visualizes? A. Stacked bar chart B. Pie chart C. Heat map D. Bar chart

C. Heat map

If you are reviewing documentation, such as policies and procedures, which operating effectiveness test are you performing? A. Inquiry B. Observation C. Inspection D. Reperformance

C. Inspection

Celine has created a scatter plot diagram that identifies outliers in the company's daily transactions that her bosses hope will help identify fraudulent transactions. Reading it properly requires strong technical knowledge. Which party would most likely be the appropriate audience for this visualization? A. Sales reps B. Shareholders C. Internal audit department D. New trainees

C. Internal audit department

The first step in analyzing a data set is learning about its data. Exploratory data analytics techniques reveal the key characteristics of a data set. Exploratory data analytics techniques help us identify three key factors of a data set. Which of the key factors is recurring or similar values, either categorical or quantitative? A. Categorical values B. Quantitative values C. Patterns D. Anomalies

C. Patterns

Monique works for a popular makeup and beauty store and wants to visualize daily sales of their top five products for the past year to see if there are any seasonal patterns. The goal of her analysis is to discover how different variables in her data set relate to one another. What type of data visualization technique will she use? A. Composition B. Distribution C. Relationships D. Comparison

C. Relationships

Choose from the definitions below the best definition of sentiment analysis. A. Sentiment analysis uses data to show what individuals, systems, and machines are doing in a visual format B. Sentiment analysis is a technique that gathers, transforms, and visualizes geographic data and imagery C. Sentiment analysis uses NLP to interpret and classify the emotions underneath language in a text format D. Sentiment analysis is an analytics technique that visualizes relationships among participants in a data set to elan about the social structure those relationships create

C. Sentiment analysis uses NLP to interpret and classify the emotions underneath language in a text format

Five data analytics-related job titles were discussed in the text. Which of the following job titles would best fit the following description: "The role is math oriented and focuses on collection and interpretation of quantitative data using defined scientific methods." A. Data engineer B. Data scientist C. Statistician D. Data analyst

C. Statistician

Charles Schwab wanted to tap into the potential of its data, so it adopted an enterprise-wide data visualization strategy using what software? A. Canva B. SAS C. Tableau D. Excel

C. Tableau

Clustering, or cluster analysis, is an analytics technique that categorizes data points into groups based on their similarities. The groups, called clusters, are determined by the distance between individual items, which indicates how closely related the data points are. Clustering is a(n) ________ Machine Learning (ML) technique in which the data input contains unlabeled data. A. Labeled B. Supervised C. Unsupervised D. Unlabeled

C. Unsupervised

________ include(s) all the end users of a data visualization. A. Story listeners B. Visualization consumers C. Visualization audience D. Visualization consultants

C. Visualization audience

White space refers to A. The background color of a visualization B. The absence of color C. negative space that creates a visual pause. D. A white element in a visualization

C. negative space that creates a visual pause.

The ________ gathered about the business and internal controls during the audit engagement must be communicated so that management can implement suggestions and address shortcomings. A. Reporting B. Fieldwork C. valuable information D. Planning

C. valuable information

When Charles Schwab implemented a data visualization software, which of the following did it not see as a key result? A. More transparency between departments B. An increase in team collaboration C. Decreased wait times for data analytics results D. A decrease in employees

D. A decrease in employees

________ captures data that occurs in chronological order across a period of time. A. Seasonality B. A dependent variable C. A time trend D. A time series

D. A time series

The first step in analyzing a data set is learning about its data. Besides discovering patterns, exploration can find unexpected data points. What are these data points called that fall outside the data set's norm? A. Categorical values B. Quantitative values C. Patterns D. Anomalies

D. Anomalies

Which of the following is a collection of individual visualizations that allows the audience to view multiple pieces of data at once? A. Infographic B. Database C. Excel workbook D. Dashboard

D. Dashboard

________ is a data analytics technique that presents data in a graphical format. A. Data storytelling B. Data design C. Design principle D. Data visualization

D. Data visualization

Linear regression is a statistical technique we use to estimate the relationships between a(n) ________ and one or more independent variables. A. Slope of the line B. Independent variable C. Y-intercept D. Dependent variable

D. Dependent variable

Exploring a new data set and understanding its composition commonly involves the data analytics technique data summarization, which involves simplifying data to quickly identify the composition of categorical and quantitative values. We compress the data into smaller, easier-to-understand outputs, called data summaries. To do this, we typically group a data set by a specific A. Data summarization B. Quantitative values C. Data summaries D. Field, or column

D. Field, or column

Dallas received some customer feedback around call center wait times taking too long. Dallas wanted to visualize the customer wait time in 5-second intervals to show management how many customers wait within different time interval windows. Which chart would help him visualize that information? A. Scatter plot B. Heat map C. Bar chart D. Histogram

D. Histogram

As an accountant working at a university, Malik wants to chart the number of students who are attending the university, full-time, over the course of the past 10 years. Which chart should Malik use? A. Box plot B. Pie chart C. Histogram D. Line chart

D. Line chart

Jorge is preparing the company's annual report. Which of the following is considered a data visualization for this purpose? A. Statement of cash flows B. Statement of operations C. Balance sheet D. Line chart showing actual revenues

D. Line chart showing actual revenues

There are four widely used categories of data analytics. Which one identifies what we should do? A. Descriptive analytics B. Diagnostic analytics C. Predictive analytics D. Prescriptive analytics

D. Prescriptive analytics

There are four widely used categories of data analytics. Choose the best description for prescriptive analytics. A. Looks at historical data and condenses it into smaller, more meaningful bits of information B. Drills down to a granular level C. Provides powerful tools that assist in decision making and inform future actions D. Requires advanced programming

D. Requires advanced programming

Max is tasked with finding the fixed cost after being given the number of units sold in a month as well as the total cost spent in the month. Which chart would help him visualize that information? A. Histogram B. Bar chart C. Heat map D. Scatter plot

D. Scatter plot

What type of chart best illustrates major and minor categories within one visualization? A. Pie chart B. Bar chart C. Tree map D. Stacked bar chart

D. Stacked bar chart

Five data analytics-related job titles were discussed in the text. Which of the following job titles would need an expert understanding of data? A. Data analyst B. Data engineer C. Data scientist D. Statistician

D. Statistician

Liam works for an ice cream shop in his town. He wants to help predict when the store needs to increase its stock of ice cream in preparation for its customers. What external data, beyond the historical sale of ice cream, can he gather to help him predict when ice cream sales will start increasing? A. Pollination levels B. Price of dairy C. Cost of fuel D. Temperatures

D. Temperatures

What uses complex calculations to predict the outcomes and probabilities associated with a decision that influences a data set? a) A simulation b) A confidence interval c) Break-even analysis d) Forecasting

a) A simulation

What are the results of an audit, such as written explanations of errors, improper activities, control weaknesses or deficiencies, and discovered fraud? a) Audit findings b) Wrap-up c) Audit workpapers d) Document request

a) Audit findings

No more than how many colors should a single visualization use? a) 3 b) 4 c) 5 d) 6

b) 4

Micah works at the zoo and wants to illustrate the cost of maintenance for each of the animals that are in the Safari exhibit. There are 12 types of animals in the Safari exhibit. What type of chart should Micah use for his report to management? a) Pie chart b) Bar chart c) Tree map d) Stacked bar chart

b) Bar chart

Malika, the accountant, is creating a visualization for the Environment, Social, and Governance (ESG) report. She is charting the sustainability efforts of the company and the improvement that it has had over the past year around sustainability. Which color scheme should she use? a) Blue b) Green c) Yellow d) Purple

b) Green

The first step toward creating a data visualization is a) brainstorming the data story. b) knowing your audience. c) choosing the appropriate chart. d)choosing the color palette.

b) knowing your audience.

Management of the business area provides the audit team with ________, in the form of a plan for remediation. a) exit meeting b) management's response c) audit recommendations d) audit findings

b) management's response

Classification analysis is the categorization of data into groups based on similarities found in a data label that was previously defined. Classification analysis might sound closely related to clustering—and these two types of analysis do have similarities. While they are both methods of categorization, they differ in the type of Machine Learning (ML) they use. Clustering uses a) unsupervised ML to analyze labeled data inputs. b) supervised ML to analyze unlabeled data inputs. c) unsupervised ML to analyze unlabeled data inputs. d) supervised ML to analyze labeled data inputs.

b) supervised ML to analyze unlabeled data inputs.

You are presented with a data set of 10 test scores: 99, 85, 84, 83, 83, 81, 80, 80, 79, and 66. What is the average test score? a. 81 b. 82 c. 99 d. 83

b. 82

Kevin is an auditor who is looking at call center metrics that the business tracks. There are four charts that he is auditing. He realizes that one of them does not belong with the theme of call center metrics. Which of the following metrics would be irrelevant to the call center? a. Queue waiting time b. Average age of customer c. Average call abandonment rate d. Average velocity of answer

b. Average age of customer

There are four widely used categories of data analysis. Which two looks at the past and uses historical data to learn more about what occurred and why it occurred? a. Predictive and Prescriptive b. Descriptive and Diagnostic c. Diagnostic and Predictive d. Descriptive and Prescriptive

b. Descriptive and Diagnostic

Maeve is a freshman outfielder on the softball team. Her softball coach tells her that the more hours she practices hitting in the batting cage and on the field, the higher her batting average will be during the season. What is the dependent variable? a. The hours of practice she does b. Her batting average c. The number of pitches she faces d. The spikes she wears

b. Her batting average

Which type of chart presents groups and subgroups as rectangular portions of the larger whole? a. Stacked bar chart b. Tree map c. Pie chart d. Histogram

b. Tree map

Amaya is creating a visualization that needs to set an energetic, enthusiastic, and optimistic tone. Which colors should she use in her visualization? a. Purple, yellow, red b. Yellow, red, orange c. Blue, yellow, red d. Green, orange, yellow

b. Yellow, red, orange

What Excel function would you use if you want to combine two or more columns into one new column? a) Text to Columns b) LEFT c) CONCAT d) SUM

c) CONCAT

What is a formal list of all documentation needed for an audit? a) Design effectiveness b) Operating effectiveness c) Document request d) Substantive procedures

c) Document request

Jasmine has done data analysis around the current communication system at work. It turns out that the employees send over 100 emails every day to communicate with one another. She wants to prepare a data story to help management understand that the company needs to adopt an instant communication system like Microsoft Teams or Slack. What part of the story would present her suggestion to improve the current communication system? a) Resolution b) Introduction c) Falling action d) Climax

c) Falling action

The five stages of an audit include important audit activities and deliverables. Which of the following is the audit stage where the workpapers are delivered? a) Planning b) Fieldwork c) Wrap-up d) Reporting

c) Wrap-up

Setting the tone of a data visualization allows the end users to a) see the data. b) believe in the data. c) feel the data. d) question the data.

c) feel the data.

Many companies perform the audit planning process annually and create a 12-month audit plan. Another method is an increasingly popular methodology that involves working in shorter sprints and making changes as needed. What is this auditing approach called? a) Sprint auditing b) External auditing c) Waterfall auditing d) Agile auditing

d) Agile auditing

Historically, auditors were divided into groups based on their expertise: operational or business auditors, financial auditors, and information technology (IT) auditors. Which of the following would be performed by an operational or business auditor? a) Network infrastructure b) Change management c) Accounts payable d) Claims processing

d) Claims processing

What is a popular method of summarizing smaller data sets in Excel? a) Dragging field names to the appropriate locations b) Group by c) Summarize d) Pivot table

d) Pivot table

The five stages of an audit include important audit activities and deliverables. Which of the following is the audit stage where the management action plan is delivered? a) Planning b) Fieldwork c) Wrap-up d) Reporting

d) Reporting

Classification analysis is the categorization of data into groups based on similarities found in a data label that was previously defined. Classification analysis might sound closely related to clustering—and these two types of analysis do have similarities. While they are both methods of categorization, they differ in the type of Machine Learning (ML) they use. Classification uses a) supervised ML to analyze unlabeled data inputs. b) unsupervised ML to analyze labeled data inputs. c) unsupervised ML to analyze unlabeled data inputs. d) supervised ML to analyze labeled data inputs.

d) supervised ML to analyze labeled data inputs.

Five data analytics-related job titles were discussed in the text. Which of the following job titles would best fit the following description: "Collects, manipulates, and analyzes data across a business." a. Data engineer b. Data scientist c. Statistician d. Data analyst

d. Data analyst

What type of data visualization allows the user to drilling down into the underlying data, exporting views as images, and changing filters? a. Static dashboard b. Database c. Infographic d. Interactive dashboard

d. Interactive dashboard

Machine Learning (ML) uses algorithms and statistical models to train an AI system through patterns and trends in data sets. ML programs systems to perform tasks without explicit instructions and is a popular application of AI in data analytics. There are three machine learning approaches. Monte Carlo simulation is an example of which type of ML? a. Supervised learning b. Unsupervised learning c. Refurbished learning d. Reinforcement learning

d. Reinforcement learning

Typography should be a. small. b. bold. c. trendy. d. readable.

d. readable.