acct 400 ch1 & 2 smartbook
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.
15.4
Data analytics professionals spend up to % of their time cleaning data for analysis?
90
Audit data standards were developed by the following party to facilitate audits.
American Institute of Certified Public Accountants
In an information value chain, what should precede the collection of data?
Business event
What would be the most appropriate designation for a professional who serves as an IT auditor?
Certified Information Systems Auditor (CISA)
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
ETL stands for which process for scrubbing raw data to make it ready for analysis?
Extract, Transform, and Load
True or false: Data that simply collects the characteristics of different transactions has great value to an organization.
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
True or false: To produce data, information is often processed and then combined with the appropriate context.
False
______ would generally be considered the first primary activity in the value chain.
Inbound logistics
The International Federation of Accountants suggests that accounting can hardly be viewed separately from which field?
Information Technology
According to the textbook, audit data standards include all but the following benefits to accountants and auditors.
Is less expensive to implement and use.
The benefits of audit data standards to accountants and auditors include all but the following
Is useful for those preparing tax returns
Which of the following is not a benefit of audit data standards?
Lends itself to analysis by managerial accountants seeking to lower costs
The "S" in the AMPS model stands for
Share the Story
The sheer amount of volume of data available for data analytics today is greater than it ever has been.
True
True or false: Auditors may monitor blogs and social media to assess the probability of a goodwill write-down.
True
Diagnostic analysis addresses which of the following questions?
Why did it happen?
Accountants gather information relevant in solving business problems, create or extract that information, and then Blank______ the information to solve the problem.
analyze
To be useful to decision makers, information from an AIS must be both relevant and
be a faithful representation
To be useful to decision makers, information from an AIS must be both relevant and Blank______.
be a faithful representation
Attributes of faithful representation include complete, free from error and free from
bias
end of ch 1
ch 2 start
An attribute of relevant information is: the information is
confirmatory
Which system contributes information on revenues to help assess profitability at a detailed customer, product, and company level to help evaluate whether business value was created?
customer relationship management system
Raw facts that describe the basic characteristics of an event would be defined as
data
The analysis needed to address the question, 'Did return on assets improve or decline last year?', is Blank______ analysis.
descriptive
The analysis needed to address the question, 'Did we make a profit last year?', is
descriptive
Accountants serving in a Blank______ capacity must have significant practical exposure to the key phases of systems analysis and design, including preparation of the feasibility analysis and data file design and documentation.
designer
As business analysts and information providers, accountants understand what data is needed to solve a problem and are, thus, in a unique position to serve as a Blank______ of accounting information systems.
designer
When auditors assess the internal controls in an AIS as part of the Sarbanes-Oxley Act, they are serving in their role as a(n) of the system.
designer
Activity-based costing would be an example of
discretionary information
Managerial accounting information is generally produced for internal information purposes and would be considered to be
discretionary information
An IT auditor serves as a(n) Blank______ of the accounting information system.
evaluator
External auditors accessing their client's accounting information system would be serving the accountant's role in an accounting information system of a(n) Blank______.
evaluator
Neutrality, or information without bias, would be considered a component of Blank______, which are critical for providing useful accounting information.
faithful representation
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
Stock prices change Blank______ financial statements.
faster than
Accounting information systems provide decision makers
financial and nonfinancial information
Which system measures and records accounting transactions to the general ledger and related journal entries from the general journal and special purpose journals and subledgers?
financial reporting system
An attribute of faithful representation is the information is
free from error
To be relevant, the attributes of AIS information should have feedback value, Blank______, and be material.
have predictive value
A(n) value chain is used to show the overall transformation from a business need and business event to the collection of data and information to an ultimate decision.
information
Sales recorded in a cash register would be an example of a(n) Blank______ activity in an information system.
input
Accountants are Blank______ of accounting information systems when they plan, coordinate, organize, staff, direct and lead those information systems.
manager
The four roles of accountants with respect to accounting information systems include user, designer, evaluator and
manager
The four roles of accountants with respect to accounting information systems include user, designer, evaluator and Blank______.
manager
A corporate tax return would be considered to be
mandatory information
Information produced for investors, banks, the SEC and the IRS would be considered
mandatory information
The more Blank______ 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 Blank______ analysis employed.
predictive
The analysis needed to address the question, 'Can we forecast whether the company will have a profit next year?', is Blank______ analysis.
predictive
An attribute of relevant information is: the information provides
predictive value
The analysis needed to address the question, 'How can revenues be maximized if our employees go on strike?', is Blank______ analysis.
prescriptive
According to the textbook, companies are empowered by using data analytics to do all but the following:
prevent fraud
Information which helps users evaluate how past decisions actually worked would be an attribute of
relevant information
Information which helps users predict what will happen in the future would be an attribute of
relevant information
Recorded transactions that are saved in the cloud would be an example of a(n) Blank______ activity in an information system.
storage
Financial statements are usually described as having which of the following forms?
structured data
A value chain illustrates both primary and activities.
support
Which of the following is facilitated by data analytics to minimize tax payments both currently and in the future?
tax planning
An accounting information system is defined as a system that records, processes and reports on business
transactions
Blogs are considered to be which form in terms of variety?
unstructured data
Information is defined as data organized in a meaningful way to be useful to the
user
When accountants input journal entries or calculate the cost of a product input, the accountants' role in an accounting information system is that of a
user
is the speed that the data is being generated
velocity
assesses the quality of the data and is one of the four V's.
veracity
is the sheer amount of data, regardless of its source. It might come from corporate systems, clickstream data from social media (e.g., Facebook, Instagram, blogs), from the government (e.g., census records), from Internet search engines (e.g., Google, Yahoo!), or just from the Internet in general.
volume
Both tax preparers and tax regulators are using analytics to assess tax compliance.
true
True or false: One reason for the paradigm shift suggests that auditors will stay engaged with clients beyond the audit since data analytics allows them to offer value to their clients.
true
