ACCT 4800 - Chapter 1 Homework/SmartBook

Traditional audit approaches tested a ____ of the financial data transactions; in contrast, data analytics enables auditors to analyze ____ dataset.

(1) sampling (2) the complete

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

normalization

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

regression

The first step in the IMPACT cycle is:

Identify the Question

Match each specific Data Analytics test to a specific test approach, as part of performing a test plan: (1) Predict which firms will go bankrupt and which firms will not go bankrupt. (2) Use stratified sampling to focus audit effort on transactions with greatest risk. (3) Work to understand normal behavior, to then be able to identify abnormal behavior (such as fraud). (4) Look for relationships between related parties that are not otherwise disclosed. (5) Predict which new customers resemble the company's best customers. (6) Predict the relationship between an investment in advertising expenditures and subsequent operating income. (7) Segment all of the company's customers into groups that will allow further specific analysis. (8) The customers who buy product X will be most likely to be also interested in product Y.

(1) Classification (2) Data Reduction (3) Profiling (4) Link Prediction (5) Similarity Matching (6) Regression (7) Clustering (8) Co-occurrence Grouping

Match the specific analysis need/characteristic to the appropriate Microsoft Track software tool: (1) Basic visualization (2) Robotics process automation (3) Data joining (4) Advanced visualization (5) Works on Windows/Mac/Online platforms (6) Dashboards (7) Collect data from multiple sources (8) Data cleaning

(1) Excel (2) Power Automate (3) Power Query (4) Power BI (5) Excel (6) Power BI (7) Power Automate (8) Power Query

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

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

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

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

Communicate insights

Which Microsoft Track tool is most appropriate for working with small data sets?

Excel

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

Master the data

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

Minimize the amount of taxes paid

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

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 (research and development)

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 skill areas that analytic-minded accountants should have?

Becoming a data scientist

Management accounting tasks that might involve data analytics include which of the following?

Determining the cost of each job.

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

Master the Data

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

Track Outcomes

The description of the management accountant's task and that of the data analyst appear to be quite similar.

True

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

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

cash

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