AIS Midterm #2

Part of understanding the data is to find relevant _________for the data.

sources

Univariate data

Type of chart: Histograms -Purpose: Frequencies, range of values, most likely values -Example: Stock returns, stock betas for an industry

Recursive nature of AMPS model

-Peeling layers of onion, you can see the next layer and evaluate it and remove it to get the 3rd layer -AMPS must be performed multiple times

To use the Tableau Show Me tool, select one or more of ____________ of interest while holding down the control (CTRL) key.

fields

Which of the following charts is used to show trend over time? A. Line charts B. Symbol maps C. Pie charts D. Treemaps E. Scatter plots

A. Line charts

10. If we wanted to know what grade we needed to get on the final in this class based on our expected performance before the final, we would call that _____________ analysis? A. Prescriptive B. Descriptive C. Diagnostic D. Predictive

A. Prescriptive

Which of these least describes the features of a Tableau dashboard? A. Presents a story of points in the analysis. B. Presents multiple sheets in one display. C. Links sheets together with the same filter. D. Lists available sheets for use on the dashboard. E. None of the choices are correct.

A. Presents a story of points in the analysis.

Which of the following is least likely to be a Dimension field in Tableau? A. Total cost B. Country C. State D. Segment E. None of the choices are correct.

A. Total cost

Extract, Transform, and Load (ETL)

A common strategy for drawing information from multiple sources by extracting data from its home database, transforming and cleansing it to adhere to common data definitions, and then loading it into the data warehouse. -50-90% of time cleaning

2. According to estimates considered in the chapter, up to what percentage of a data analyst's time is spent cleaning (or scrubbing) the data to be ready for analysis? A. 90 percent B. 0 percent C. 20 percent D. 40 percent

A. 90 percent

Measures are ________ fields

numeric

Benefits and Costs of the Use of Data Analytics on Business

-Companies generally face 2 important limiting factors in their business systems when dealing with big data 1. Storage-companies choose cloud platform to lower cost 2. Processing power-required to obtain information valuable to the company could be enormous or even impossible

You can use Value Field Settings to specify a Custom ________ for a field

Name

Understanding the data also includes selection of appropriate

metrics

What are the four stages of the AMPS model?

Ask the question Master the data Perform the analysis Share the story

Impact of data analytics on business

•A study from McKinsey Global Institute estimates that Big Data could generate up to $3 trillion in value per year in just a subset of industries impacted. •With a wealth of data on their hands, companies are empowered by using data analytics to discover various patterns, investigate anomalies, forecast future behavior, and so forth. •Patterns discovered from historical data enable businesses to identify future opportunities and risks. In addition to producing more value externally, studies show that data analytics affects internal processes, improving productivity, utilization, and growth.

Give an example of a question an accountant might try to address for each of these types of data analysis: 1) Descriptive Analysis 2) Diagnostic Analysis 3) Predictive Analysis 4) Prescriptive Analysis

1) Descriptive Analysis - What happened? - "What are the sales totals over the last 5 years? 2) Diagnostic Analysis - Why did it happen? - "Why did sales decline over the last 5 years?" 3) Predictive Analysis - What will happen in the future? - "Will sales keep declining in the future?" 4) Prescriptive Analysis - What should we do about the thing given what we know? - "What action should we take to address declining sales?"

A study from McKinsey Global Institute estimates that Big Data could generate up to $Blank trillion in value per year in just a subset of industries impacted.

3

3. The acronym ETL, in the process of readying data for use in data analysis, refers to what three words? A. Extrapolate, transform, and learn B. Extrapolate, transpose, and load C. Extract, transform, and load D. Extract, transform, and learn

C. Extract, transform, and load

The data analytics skill sets that should be developed

Creating data structures/models Mining/Analyzing data Acquiring/cleansing data

Structured data

Highly organized data that fits nicely in a table or database. A balance sheet or income statement is a good example

Geospatial data

Type of chart: Maps, symbol maps -Purpose: Comparisons among locations -Example: Relative sales by state

Audit Data Standards (ADS)

a standard format for data files and fields typically needed to support an external audit in a given financial business process area that was developed by the AICPA

When joining two tables in Tableau, the overlapping_________indicate the type of join

circles

Dimensions in Tableau are __________ fields

categorical

The AMPS Model: Ask the Question

•"Your Data Won't Speak Unless You Ask It the Right Questions." •The AMPS model starts with asking questions that can be addressed with data and that lead to better decision making.

Data Visualization

•The process of presenting information graphically •One way of sharing the story and turning data into information •Presenting relevant information to decision makers

8. What type of analysis addresses questions of "Why did it happen"? A. Prescriptive analysis B. Diagnostic analysis C. Predictive analysis D. Descriptive analysis

B. Diagnostic analysis

Which of the following is not a characteristic of an Excel table? A. No blank rows B. Includes charts C. No blank columns D. Includes a header row E. None of the choices are correct.

B. Includes charts --> if there are no blank rows/columns in the data excel will correctly identify the extent of the data for the table

Which of the following best describes a data visualization? A. Part of the information value chain B. A tool for preparing the data C. A tool for recording data transactions D. A graphical representation that presents information to decision makers E. None of the choices are correct.

D. A graphical representation that presents information to decision makers

Time trends

Type of chart: Line charts -Purpose: Comparison over time -Example: Sales by year and quarter

Multivariate relationships

Type of chart: Scatter plots -Purpose: Relationships, correlations -Example: Comparing return on equity and stock returns

Important consideration for developing and presenting visualizations

-Create or reinforce knowledge -Choose the right chart -Direct user to most important information -NOT Selecting appropriate metrics: b/c this happens before data visualization

Audit data standard benefits

-Reduces the time and effort involved in accessing data by -Works well with standard audit and risk analytic tests often run against datasets in specific accounts or groups of accounts (such as inventory or accounts receivable or sales revenue transactions). -Allows software vendors (such as ACL Inc.) to produce data extraction programs for given enterprise systems to help facilitate fraud detection and prevention and risk management. -Facilitates testing of the full population of transactions, rather than just a small sample. -Connects/interacts well with XBRL GL Standards (to be introduced in Chapter 10).

Common elements in data processing for Excel, Tableau, and Power BI

1. Get Data 2. Set relationships among tables 3. Select attributes for the visualization 4. Select & modify the visualization

Data visualization 3 basic activities

1. Understanding the data-closely related to ETL-extract, transform, & load 2. Selecting the data visualization tools 3. Develop & present the visualization

The 4 V's pf big data

1. Volume-massive amount of data involved 2. Velocity-data comes at quick speeds or in real time(streaming videos/news feed) 3. Variety-Unstructured or unprocessed data, comments on SM, emails, GPS, measurements 4. Veracity-Quality of data including extent of cleanliness (without errors or data integrity issues), reliability and representationally faithful

The AMPS Model

1.Ask the Question 2.Master the data 3.Perform the analysis 4.Share the story

Which of the following is not part of common steps in using a data analysis tool? A. Get data B. Set relationships among tables C. Select the attributes for the visualization D. Deliver the visualization to the decision maker E. None of the choices are correct.

D. Deliver the visualization to the decision maker

9. What type of analysis would address the question of whether a customer will ultimately pay if credit is granted? A. Descriptive analysis B. Diagnostic analysis C. Prescriptive analysis D. Predictive analysis

D. Predictive analysis

Excel table

Data arranged in columns and specially formatted with column headers that contain commands that allow you to sort, filter, and perform other functions on the table.

Which of the following is an important consideration in designing a data visualization? A. Choosing the right chart B. Using explanatory titlesload C. Using color or size to draw attention to key insights D. Defining chart elements clearly E. All of the choices are correct.

E. All of the choices are correct.

Which of the following is true about Excel tables? A. They are created from rectangular data ranges. B. The user can add a totals row. C. The header includes filter buttons. D. The table is automatically formatted. E. All of the choices are true.

E. All of the choices are true.

During the second stage of the AMPS model a business analyst would likely only gather data meeting Audit Data Standards. -True - False

False

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. True false question.

False: Reason: Data analytics allows auditors to vastly expand sampling beyond current traditional sample sizes and the ability to test the full population of transactions.

Slicer

One of the ways to filter a table so that it shows only records containing a certain object. A slicer is a selection panel that floats above a worksheet (the way a chart does). --> on excel

Data analytics

The science of examining raw data, removing excess noise and organizing the data with the purpose of drawing conclusions about that information -Involves the technologies, systems, practices, methodologies, databases, and applications used to analyze diverse business data to help organizations make sound/timely business decisions

Big data

defined as datasets that are too large and complex for businesses' existing systems to handle using their traditional capabilities to capture, store, manage and analyze these data sets.

Audit Data Standards

is a set of standards for data files and fields typically needed to support an external audit in a given financial business process area. -If both the provider and the user (e.g., a company and its external auditor) of the data had the same data standards for their data, this cost of cleaning and formatting the data could be alleviated

According to the textbook, companies are empowered by using data analytics to do all but the following: forecast future behavior prevent fraud investigate anomalies discover various patterns

prevent fraud

Data analytics 4 types of analyses

1. Descriptive-analysis performed that characterizes, summarizes, and organizes features of properties of the data to facilitate understanding 2. Diagnostic-investigate underlying cause can't be answered by looking at descriptive data 3. Predictive-provide foresight by identifying patterns in historical data by judging likelihood/profitability 4. Prescriptive-best possible options given contraints/changing conditions

Data Visualization Process

1.Understand the data 2.Select the data visualization tool •Excel •Tableau •Power BI •Others 3.Develop and present the visualization •Create or reinforce knowledge Choose the rightchart

4. Which term is used to describe the science of examining raw data, removing excess noise from the dataset, and organizing the data with the purpose of drawing conclusions for decision making? A. Data Analytics B. Big Data C. Audit Analytics D. Extract, transform, and load

A. Data Analytics

Which of the following is not a basic activity for data visualization? A. Documenting the business processes that generate data B. Understanding the data C. Selecting the data visualization tool D. Developing the visualization E. None of the choices are correct.

A. Documenting the business processes that generate data

Descriptive Analytics

Analysis performed that characterizes, summarizes and organizes past performance. Addresses questions like: -Did we make a profit last year? -How much did we pay in federal taxes last year? -How long have the existing accounts receivable been past due?

Diagnostic Analytics

Analysis performed to investigate the underlying cause of a phenomenon Addresses questions like: -Why did advertising expense increase, but sales fall? -Why did we experience an unfavorable labor rate variance last year? -Why did overall tax increase even though net income did not?

Predictive Analysis:

Analysis performed to provide foresight by identifying patterns in historical data Addresses questions like: -What is the chance the company will go bankrupt? -What is our expected sales and income next year? -Can we predict if the financial statements will be misstated? -Will the borrower pay us back the loan we've granted her?

Prescriptive Analytics

Analysis performed which identifies the best possible options given constraints or changing conditions Addresses questions like: -What is the level of sales needed to breakeven? -How can revenues to maximized if there is a trade war with China? -Should the company lease or buy its headquarters office? -Should the company make its own products or outsource production to another company?

Which of the following is NOT a well-known visualization tool? A. Power BI Desktop B. Microsoft Access C. Microsoft Excel D. SPSS Statistical Software

B. Microsoft Access

Which of the following is least likely to be a Measure field in Tableau? A. Sales revenue B. Segment C. Total cost D. Quantity sold E. None of the choices are correct.

B. Segment

7. Which type of question does descriptive analysis address? A. Will it happen in the future? B. What happened? C. Why did it happen? D. What should we do based on what we expect will happen?

B. What happened?

Describe what big data is. Try to define it. Use 1-3 sentences.

Big Data is defined as datasets that are too large and complex for businesses' existing systems to handle using their traditional capabilities to capture, store, manage and analyze these data sets.

5. ADS is a standard format for data files and fields typically needed to support an external audit in a given financial business process area that was developed by the AICPA. The acronym ADS stands for what three words? A. Accounting Data Standards B. Auditor Data Standards C. Accounting Doctoral Scholars D. Audit Data Standards

D. Audit Data Standards

Which of the following best describes the purpose of the Show Me feature in Tableau? A. Guides the user through an analysis of data relationships. B. Helps the user change the format of the selected data. C. Helps the user change the color of worksheet visualization components. D. Helps the user select the best chart to display the selected measures and dimensions. E. None of the choices are correct.

D. Helps the user select the best chart to display the selected measures and dimensions.

1. Big Data is often described by the 4 Vs, or: A. volume, volatility, veracity and variety. B. volume, velocity, veracity, and variability. C. volume, volatility, veracity, and variability. D. volume, velocity, veracity, and variety.

D. volume, velocity, veracity, and variety.

Finish the following sentence: Data analytics is the science of

Data Analytics is defined as the science of examining raw data, removing excess noise and organizing the data with the purpose of drawing conclusions for decision making.

Big data can sometimes seem so big and umanageable. In 1-3 sentences, describe how data analytics provides a way to deal with big data.

Data analytics uses context to figure out what is needed to draw conclusions to be useful in decision making. It provides a way to sarch through large and unstructured data to identify patters and/or relationships. Data analytics is part of the process of transforming data into information that is useful for decision making.

The AMPS Model: Master the Data

Data questions include: •Data Accessibility - can we get the needed data to answer the question posed? •Data Reliability - is the data clean? •Data Integrity - is the data accurate, valid and consistent over time? •Data Type - is the data structured? is the data internal? are there privacy concerns with the data?

Unstructured data

Data without internal organization(or structure). Blogs and SM and pictures posted on Instagram are examples

Which of the following is a characteristic of a pivot table? A. It summarizes data in a range, table, or external data source. B. It can include multidimensional summaries by designating row and column categories. C. Users can format the numbers in the Values field. D. Users can choose subtotals and grand totals. E. All of these are characteristics of pivot tables.

E. All of these are characteristics of pivot tables.

Which of the following is not true about a pivot table? A. Users can select report row variables. B. Users can select to include grand totals. C. Users can select report column variables. D. Users can format the values in the pivot table. E. Users must sum the values in the pivot table.

E. Users must sum the values in the pivot table.

ETL stands for which process for scrubbing raw data to make it ready for analysis?

Extract, transform, and load

True or false: Audit data standards are a set of data standards in preparation for the internal audit.

False: Reason: Audit data standards are a set of data standards for the external audit.

True or false: In general, data analytics requires the auditor to pull data at the client site before an external audit is completed.

False: With data analytics, auditors will be able to work from anywhere, anytime, without the need to pull data at the client site.

The AMPS Model: Ask the Question, Potential questions include:

Potential questions include: •Which product is most profitable at stores in Missouri? •Is it more profitable to produce an item in the United States or in Mexico (or Indonesia)? •Why are our costs increasing in the West but decreasing in the East? •What is the probability that our audit client will go bankrupt or need to restate its financial statements?

6. Which type of question does prescriptive analysis address? A. What should we do based on what we expect will happen? B. Will it happen in the future? C. Why did it happen? D. What happened?

Predictive analysis: Will it happen in the future?What is the probability something will happen? Is it forecastable? A. What should we do based on what we expect will happen?

Proportional

Type of chart: Pie charts, doughnut charts, treemaps -Purpose: Comparison of parts to a whole -Example: Division net profit slices in total; company net profit pie

Categorical data

Type of chart: Vertical/horizontal bar, treemaps, bubble charts -Purpose: comparisons of performance metrics, don't have too many categories -Example: Revenue or profit comparisons among divisions or stores

Tableau Desktop

Software application that supports data analytics and visualizations. It integrates data from multiple data sources. It provides easy-to-use and powerful summary reporting and charting capabilities. It allows users to build dashboards and create stories from their data.

The AMPS Model: Perform the Analysis

The Type of Question Asked Leads to the Analysis Performed 1.What Happened? - Descriptive Analysis 2.Why Did it Happen? - Diagnostic Analysis 3.Will it Happen in the Future? - Predictive Analysis 4.What Should We Do, Based on What We Expect Will Happen? - Prescriptive Analysis

What is the analytics mindset, as presented by our textbook?

The analytics mindset is the ability to: Ask the right questions - Extract, transform and load relevant data - Apply appropriate data analytics techniques - interpret and share results with stakeholders.

Diagnostic analysis addresses which of the following questions? Multiple choice question. What happened? What should we do based on what we expect will happen? Will it happen in the future? Why did it happen?

Why did it happen?

11. Data Analytics can be disaggregated into four steps as part of the AMPS. Which of these AMPS processes would be considered mastering the data [or ETL (extract, transform, and load)] or performing the analysis? a. Removing extraneous data and noise b.Looking for trends in the data that might predict new sales opportunities. c.Finding the necessary data from the financial reporting system to give to the external auditor for analysis d. Performing test of internal controls by the external auditor e. Considering Champaign, Illinois, weather patterns to predict corn production in the immediate area. f. Consolidating large volumes of data from multiple sources and platforms.

a. Removing extraneous data and noise=ETL b.Looking for trends in the data that might predict new sales opportunities. =Analysis c.Finding the necessary data from the financial reporting system to give to the external auditor for analysis=ETL d. Performing test of internal controls by the external auditor=Analysis e. Considering Champaign, Illinois, weather patterns to predict corn production in the immediate area. =Analysis f. Consolidating large volumes of data from multiple sources and platforms.=ETL

Match these definitions with either of the four Vs to describe Big Data: a. Unstructured and unprocessed data, such as comments in social media, emails, global positioning system measurements b. The massive amount of streaming data involved c. Data coming in at fast speeds or in real-time, such as streaming videos and news feeds d. opinions or facts e. data with a lot of missing operations f. Stock market data that updates every 5 seconds g. Financial statement data that appears in tables h. All Twitter data from 2021

a. Unstructures and unprocessed data, such as comments in social media, emails, global positioning system measurements=Variety b. The massive amount of streaming data involved=Volume c. Data coming in at fast speeds or in rela time, such as streaming videos and news feeds=Velocity d. opinions or facts=Veracity e. data with a lot of missing operations= Veracity f. Stock market data that updates every 5 seconds=Velocity g. Financial statement data that appears in tables=Variety h. All Twitter data from 2021=Volume

Impact of Data analytics on accounting

•may be used to scan the environment—that is, by scanning social media to identify potential risks and opportunities to the firm. • plays a very critical role in the future of audit. By using data analytics, auditors are able to spend less time looking for evidence, which will allow more time for presenting their findings and making judgments. • expands auditors' capabilities in services such as testing for fraudulent transactions and automating compliance‐monitoring activities (e.g., filing financial reports with the SEC or IRS).