ACC 615 Chapter 1 SmartBook & Lecture Video Questions

Traditional audit approaches tested data _____________ of the transactions; in contrast, audits that fully integrates big data and analytics will test the full _______________ of data.

sample, population

3 V's of data analytics

volume velocity variety

master the data

know what data are available and how they relate to the problem

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

patterns

The IMPACT cycle includes all but the following other process:

data preparation

variety

refers to different types

effective data analytics provides a

way to search through large structured and unstructured data to identify unknown patterns or relationships

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, transparency and accuracy of the audit

data analytics enables

enhanced audits, expanded services, and added value to clients

accountants make better

estimates of collectability, write-downs, etc.

address and refine results

identify issues with the analyses, possible issues, and refine the model

velocity

refers to frequency

According to the text, cleaning the data takes between ____ and ____ percent of data analytic professional's time.

50 and 90

Which testing approach would be considered to be an attempt to discover associations between individuals based on transactions involving them?

Co-occurrence Grouping

Asking questions like "Are our customers paying us in a timely manner" would be the first step in which of the following processes?

IMPACT cycle

True or false: Data Analytics can impact Financial Accounting by helping evaluate estimates and valuations.

T

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

T

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

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

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

ability to house huge data sets

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

accounts payable

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

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

accountants need to be able to

articulate business problems, communicate with data scientists, draw appropriate conclusions, present results in an accessible manner, and develop an analytics mindset

data analytics enhances

audit quality

Data sets that are too large and complex for businesses' existing systems to handle are called _______________.

big data

The firm practice of monitoring competitors, customers and suppliers to better understand its opportunities and threats is called __________.

business intelligence

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

classification

Which approach to Data Analytics attempts to assign each unit in a population into a small set of classes where the unit belongs?

classification

Which skills were not emphasized that analytic-minded accountants should have?

classification of test approaches

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

communicate insights

communicate effectively using clear language and visualizations

Once the data has been analyzed and the results have been refined, what is the next step in the IMPACT cycle?

communicate insights

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 results

The real value inherent in data comes from ____________, discovering the various buying patterns of customers, investigating anomalies that were not predicted in firm operations, forecasting future demand and supply and so on.

data analytics

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

Which of these terms is defined as being a central repository of descriptions for all of the data attributes of the dataset?

data dictionary

accountants also need to be comfortable with

data scrubbing and data preparation, data quality, descriptive data analysis, data analysis through data manipulation, define and address problems through statistical analysis, and data visualization and data reporting

track outcomes

follow up on the results of the analyses

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

analysts

identify risks and opportunities through analysis of internet searches

The first step in the IMPACT cycle is:

identify the question

IMPACT model

identify, master, perform, address, communicate, and track

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

internal and external

managers understand tax consequences of

international transactions, investment, mergers and acquisitions

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 research and development

Which approach to Data Analytics attempts to predict relationship between two data items?

link prediction

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

master the data

Reviewing data availability in a firm's internal and external systems would be an example of which step in the IMPACT cycle?

master the data

Scrubbing the data would be an example of which step in the IMPACT cycle?

master the data

Tax compliance deals primarily with filing tax returns. In contrast, tax planning primarily helps

minimize the amount of taxes paid.

big data

refers to data sets which are too large and complex to be analyzed traditionally

volume

refers to size

An attempt to estimate or predict, for each unit, the numerical value of some variable using some type of statistical model would be called the _____________ approach.

regression

By the year 2020, about 1.7 megabytes of new information be created every:

second

perform the test plan

select an appropriate model and to find a target variable

Which approach to Data Analytics attempts to identify similar individuals based on data known about them?

similarity matching

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

companies develop

sophisticated tax planning strategies

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.

speed

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

stay engaged with clients beyond the audit

the organization understands

tax tables and other tax data to aid compliance

managers better understand

the business environment through social media

data analytics

the process of evaluating data with the purpose of drawing conclusions to address business questions.

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

track outcomes

The "T" as part of the IMPACT cycle stands for:

track outcomes

McKinsey Global Institute estimates that Data Analytics could generate up to $3 _____ in value each year.

trillion

identify questions

understand the business problems that need to be addressed

The IMPACT cycle includes all but the following process:

visualize the data

Big Data is often described by the three V's, or

volume, velocity, and variety

Which other skill was not emphasized that analytic-minded accountants should have?

data and systems analysis and design