Exam 1 Applied Analytics
______ is an observation about the frequency of leading digits in many real-life sets of numerical data.
Benford's law
Which testing approach would be considered to be an attempt to discover associations between individuals based on transactions involving them?
Co-occurrence Grouping
The process of evaluating data with the purpose of drawing conclusions to address business questions is defined as:
Data Analytics
Management accounting tasks that might involve data analytics include which of the following?
Determining the cost of each job.
Which Microsoft Track tool is most appropriate for working with small data sets?
Excel
An example of time series analysis would be a prediction of future earnings based on past sales.
False
Which of the following describes part of the goal of the ETL process?
Identify and Obtain the data needed for solving the problem
Which of the following is true regarding the profiling approach?
It is generally performed on data that is readily available.
Which of the following is true regarding the Data Reduction approach?
It primarily uses structured data that is readily searchable.
What is the terminology for the items that are useful for ranking observations rather than simply predicting class probability?
Linear classifiers
In the example regarding the LendingClub data in which the analyst is researching loan rejection, they identified three possible indicators for why a loan would be rejected, the debt-to-income ratio, length of employment, and credit [risk] score. Which is the dependent variable?
Loan rejection
______ include both unsupervised exploratory analysis and supervised model generation to provide insight and predictive foresight into the business and decisions made by accountants and auditors.
Machine learning and artificial intelligence
Scrubbing the data would be an example of which step in the IMPACT cycle?
Master the Data
Which Microsoft Track tool is best for advanced data visualizations?
Power BI
Which analytics type works to identify the best possible options given constraints or changing conditions?
Prescriptive analytics
Which of the following data approaches are associated with diagnostic analytics?
Profiling
XBRL is used to facilitate the exchange of financial reporting information between the company and the Blank______?
Securities and Exchange Commission
What is the purpose of clustering?
To identify groups of similar data elements and the underlying drivers of these groups.
What is the purpose of Data Reduction?
To reduce the amount of detailed information considered to focus on the most interesting or abnormal items.
The "T" as part of the IMPACT cycle stands for:
Track outcomes
In the following question, what would be the target? Given a set of customer data, we are trying to predict the total transaction amount based on a variety of attributes.
Transact amount
Which of the following is not one of the means of cleaning the data after extraction and validation?
Transform the data into usable form
Any transaction that has a Z-score of Blank______ or above would represent abnormal transactions.
3
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
Place the steps of classification into order.
-identify the classes you wish to predict -manually classify an existing set of records -select a set of classification models -divide your data into training and testing sets -generate your model -interpret the results and select the "best" model
Click and drag on elements in order Place the five steps of the ETL process in order:
1. Determine the purpose and Scope of the Data Request 2. Obtain the Data 3. Validate the Data for Completeness and Integrity 4. Clean the Data 5. Load the Data for Data Analysis
Which of the following is an accurate description of the Audit Data Standards?
A guide for standardizing the way in which data are provided to auditors
Select the appropriate definition for regression:
A method used to predict specific values
Which would not be considered as one of the seven skills that analytic-minded accountants should have?
Ability to house huge data sets Data Description
What is the name of a system that records, processes, reports, and communicates the results of business transactions to provide financial and nonfinancial information for decision-making purposes?
Accounting Information System
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 Blank______ of the audit.
Accuracy
Data analytics are used to discover all of the following except:
Anomalies which are anticipated
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
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
Use of Data Visualization to report the results to management would be part of which step of the IMPACT cycle?
Communicate Insights
A digital dashboard would be part of which step of the IMPACT cycle?
Communicates Insights and Track Outcomes
______ are designed to be interactive and adapt to the information collected by the user.
Decision support systems
What types of analytics summarizes existing data to determine past performance?
Descriptive analytics
After you have identified the objects or activity you wish to profile, what should you do next?
Determine the types of profiling you want to perform.
Which of the following questions are NOT suggested by the Institute of Business Ethics to allow a business to create value from data use and analysis, and still protect the privacy of stakeholders?
Does the data used by the company include personally identifiable information?
What is the name of an information system that integrates applications through the business into one system?
Enterprise Resource Planning
A Data Dictionary will be more robust and will have more attributes to keep track of for a dataset stored as a flat file.
False
Dependent variables can only be explained by a maximum of one independent variable.
False
Tableau Desktop is the best Tableau Track tool for data preparation.
False
The co-occurrence grouping data approach is associated with predictive analytics.
False
True or false: Classification requires that we know a great deal about the observation that we're attempting to place in a class.
False
True or false: Data analytics involves only the analysis of unstructured data.
False
True or false: When clustering works well, observations within a cluster should be different, and the data across clusters should be very similar.
False
After you have identified the attribute you would like to reduce or focus on, what is the next step?
Filter the results.
______ looks for similarities between portions, or segments, of the text of each potential match.
Fuzzy match
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
Click and drag on elements in order Place the steps of Data Reduction in order:
Identify the attribute you would like to reduce or focus on. Filter the results. Interpret the results. Follow up on the the results.
Click and drag on elements in order Place the steps of profiling in order, from 1 through 5.
Identify the objects or activity you want to profile. Determine the types of profiling you want to perform. Set boundaries or thresholds for the activity. Interpret the results and monitor the activity and/or generate a list of exceptions. Follow up on exceptions
The first step in the IMPACT cycle is:
Identify the question
Which of the following is not one of the considerations for obtaining the data?
Identifying any risks that exist in data integrity, as well as the mitigation plan.
When is a foreign key required?
If two tables are related in a relational database, one of the two must have a foreign key
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 Blank______.
Investment in R&D (research and development)
What is the purpose of regression analysis?
It allows analysts to develop models to predict expected outcomes.
What is a data dictionary useful for?
It helps database administrators maintain databases.
In the example regarding the LendingClub data in which the analyst is researching loan rejection, they identified three possible indicators for why a loan would be rejected, the debt-to-income ratio, length of employment, and credit [risk] score. Which of the following is/are the explanatory variable(s)?
Length of employment Debt-to-income ratio Credit [risk] score
After you have identified the classes you wish to predict, what is the next step?
Manually classify an existing set of records.
Which of the following is not an existing Audit Data Standard? Inventory subledger Order-to-Cash subledger General Ledger Procure-to-Pay subledger Manufacturing subledger
Manufacturing Subledger
As part of mastering the data, data analysts perform data Blank______ to reduce data redundancy and improve data integrity.
Normalization
Decision support systems are an example of ______.
Prescriptive analytics
______ might be used to identify areas where there is a lack of controls, changes in procedures, or individuals more willing to spend excessively in potential types of T&E expenses which might be associated with higher risk.
Profiling
What is the terminology for removing branches from a decision tree to avoid overfitting the model?
Pruning
Click and drag on elements in order SQL can extract data from two related tables. Place the following lines of SQL code in order to create a query that would retrieve all of the data from the Sales_Subset and the Customer tables.
Select From Customer Inner Join Sales_Subset On Customer.CustomerID = Sales_Subset.Customer_ID
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 the example of profiling for management accounting regarding Advanced Environmental Recycling Technologies, what are they looking for significant variances in?
Standard Cost
Which is the best Tableau Track tool for advanced visualizations?
Tableau Desktop
What is the purpose of profiling?
To gain an understanding of a typical behavior of an individual, group, population, or sample.
What is the purpose of a data request form?
To make communication easier between data requester and provider.
Select the appropriate definition for regression:
To predict which class an observation that we know little about will belong to.
What is the purpose of classification?
To predict which class an observation that we know little about will belong to.
Match the classification terminology with its definition.
Training Data - existing data that have been manually evaluated and assigned a class Test Data - existing data used to evaluate the model Decision Tree - a tool that is used to divide data into smaller groups Decision Boundaries - a technique used to mark the split between one class and another
A company's ethical considerations often includes an assessment of the risks linked to the specific type of data the company uses.
True
A company's ethical considerations often includes evaluating the use of ethical standards in the acquisition and transmission of data from third party providers.
True
The 4 V's describing Big Data include: Velocity, Variety, Veracity and Blank______.
Volume
Select the correct definition of class.
a manually assigned category applied to a record based on an event
An attempt to assign each unit (or individual) in a population into a few categories would be called the Blank______ approach.
classification
Using a _____ model, you can predict whether a new vendor belongs to one class or another based on the behavior of others.
classification
As mentioned in the chapter, which of the following is not a common way that data will need to be cleaned after extraction and validation?
clean up trailing zero
The purpose of comparing the number of records and descriptive statistics for numeric fields is to ensure that the data were extracted _____.
completely
When evaluating classifiers, you need to be careful to strike a balance between what two things?
complexity of the model and accuracy of the classification
When obtaining the data yourself, one of the best tools to use to identify the tables that you could use would be a _____ dictionary.
data
______ are used to make communication easier between the data requester and the data provider.
data request forms
What are attributes that exist in a relational database that are neither primary nor foreign keys?
descriptive attributes
Which type of attribute exists to provide additional business information, but is not required in a normalized, relational database?
descriptive attributes
Profiling is a/an _____ analytics method that is used to discover patterns of behavior, based on the distance of z-scores from the mean.
diagnostic
Variance analysis, a common practice in management accounting, is an example of Blank______ analytics.
diagnostic
In the example provided in the text regarding employee turnover, the analyst is trying to predict employee turnover based on current professional salaries, health of the economy (GDP), and salaries offered by other accounting firms. In this scenario, what is the dependent variable?
employee turnover
A target is an expected attribute or value that you want to
evaluate
Mastering the data can also be described via the ETL process. The ETL process stands for:
extract, transform, and load data
Time series analysis is a predictive analytics technique used to predict future values based on past values of other variables.
false
Clustering is an unsupervised method that is used to find _____ of similar data elements and the underlying relationships of those groups.
groups
In the example provided in the text regarding employee turnover, the analyst is trying to predict employee turnover based on current professional salaries, health of the economy (GDP), and salaries offered by other accounting firms. In this scenario, select the explanatory variable(s). Select all that apply.
health of the economy salaries offered by other accounting firms current professional salaries
The advantages of storing data in a relational database include which of the following?
help in enforcing business rules and integrating business processes
______ data might be used to address many of the questions facing financial reporting.
internal and external
Which of the following is not one of the means of cleaning the data after extraction and validation?
load the data into the software program in preparation for analysis.
Classification predicts a class for a new observation based on the _____ identification of classes from previous observations.
manual
Profiling is used to discover ______ of behavior, based on the distance of z-scores from the mean.
patterns
Machine learning, artificial intelligence and decision support systems are all examples of Blank______ analytics.
prescriptive
Which attribute is required to exist in each table of a relational database and serves as the "unique identifier" for each record in a table?
primary key
The four benefits of storing data in a relational database are completeness of data, no _____ data, business rules are enforced, and communication and integration of business processes.
redundant
Audits provide important findings from both a financial perspective and non-financial perspective that help a firm to Blank______:
refine their processes
The four benefits of storing data in a relational database are completeness of data, no redundant data, business _____ are enforced, and communication and integration of business processes.
rules
Traditional audit approaches tested a Blank______ of the financial data transactions; in contrast, data analytics enables auditors to analyze Blank______ dataset.
sampling, the complete
The extraction process requires two steps. Step 1 is determining the _____ and _____ of the data request.
scope and purpose
Structured data is stored in a database or spreadsheet and are readily ______.
searchable
In the profiling example regarding T&E Expenses, which of the following is NOT one of the areas that the analyst would try to uncover?
significant variances in standard cost
Benford's law states that in many naturally occurring collections of numbers, the significant leading digit is likely to be Blank______.
small
In a significant paradigm shift, data analytics will allow auditors to:
stay engaged with clients beyond the audit
Regression is a/an _____ method used to predict specific values given an explanatory variable (or variables).
supervised
Since it is possible that some data might can be lost during the extraction process, it is critical to ensure
that the extracted data are complete
What is XBRL used for?
to facilitate the exchange of financial reporting information between a company and the SEC.
The purpose of transforming data is:
to validate the data for completeness and integrity
The description of the management accountant's task and that of the data analyst appear to be quite similar.
true
Clustering is a/an _____ method that is used to find natural groupings within the data.
unsupervised
Knowing the mean and standard deviation, and assuming a normal distribution, one can compute which statistic that can be used to identify abnormal transactions?
z-score
True or false: Comparing the number of records extracted to the number of records in the source database is a means of validating the data for completeness and integrity.
True
True or false: When extracting data yourself, you should consider identifying the tables that contain the information you need.
True
The 4 V's describing Big Data include: Volume, Variety, Veracity and Blank______.
Velocity
A class is a manually assigned _____ applied to a record based on an event.
category
All of the following are considered to be steps for validating the data after extraction except the following:
clean leading zeroes and nonprintable characters
All of the following are considered to be steps for validating the data after extraction except the following: -clean leading zeroes and nonprintable characters -compare string limits for text fields -compare descriptive statistics for numeric fields -validate date/time fields
clean leading zeroes and nonprintable characters
The firm practice of monitoring competitors, customers and suppliers to better understand its opportunities and threats is called Blank______.
data analytics
The real value inherent in data comes from Blank______, discovering the various buying patterns of customers, investigating anomalies that were not predicted in firm operations, and forecasting future demand and supply.
data analytics
The metadata that describes each attribute in a database is which of the following?
data dictionary
A specific type of data profiling that is used to look for correspondences between portions, or segments, of text for potential matches is called _____ match.
fuzzy
Why is Supplier ID considered to be a primary key for a Supplier table?
it contains a unique identifier for each supplier
When you need to retrieve data that is stored in more than one table, which type of clause should you use in your SQL query?
join
Step 5 of the ETL process is:
loading the data for analysis
Tax compliance deals primarily with filing tax returns. In contrast, tax planning primarily helps
minimize the amount of taxes paid.
Generally the more complex and complete the model, the higher degree of the model Blank______ the data.
overfitting
Profiling is used to discover _____ of behavior, based on the distance of z-scores from the mean.
patterns
An attempt to estimate or predict, for each unit, a specific dependent variable value using some type of statistical model would be called the Blank______ approach.
regression
A UML Class Diagram is used to support and design a _____ database.
relational
What type of database are you most likely to come across when extracting and using accounting and financial data?
relational
A/an _____ approach is used when you are performing analysis that uses historical data to predict a future outcome based on a specific question.
supervised
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, Blank______, and accuracy of the audit.
transparency
A decision _____ is a tool used to divide data into smaller groups. Decision _____ mark the split between one class and another.
tree, boundaries
The null hypothesis assumes the hypothesized relationship does not exist.
true
True or false: Data analytics expands auditors' capabilities in services like testing for fraudulent transactions.
true
A/an _____ approach is used when you don't have a specific question and are simply exploring the data for potential patterns of interest.
unsupervised
