Exam 1 Applied Analytics

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______ 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


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