ACCT 3130 Chapter 1 Concepts

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

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

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

minimize the amount of taxes paid.

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

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

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

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

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

Become a data scientist

Data Visualization would be part of which step of the IMPACT cycle?

Communicate insights

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

Communicate insights

The process of evaluating data with the purpose of drawing conclusions to address business questions is defined as:

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

Data description

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

Master the data

As part of mastering the data, data analysts perform data ________________ to reduce data redundancy and improve data integrity.

Normalization

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

Velocity

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

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

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

As part of mastering the data, data analysts perform data ________________ to provide a sense of the reliability of the data.

validation and completeness testing

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

Ability to house huge data sets

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

Co-occurrence Grouping

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

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

Patterns

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

Which testing approach would be considered to be an attempt to identify similar individuals based on data known about them?

Similarity Matching

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

Track Outcomes

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

True

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

True

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

accounts payable

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 ____________ of the audit.

accuracy

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

big data

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

classification

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

data analytics