Midterm
Decision support systems are an example of _____.
predictive analytics
Which of the following is an accurate description of the Audit Data Standards?
A guide for formatting the way in which data are provided to auditors.
Which of the following is not a benefit of storing data in a relational database?
All of the data is stored in the same table
True or false: Pie charts are most useful for numerical data.
False
The first step in data reduction
Identify the attribute you would like to reduce or focus on
Which of the following is a good use of exploratory visualizations?
To identify an appropriate model
Which of the following common visualizations is most useful for showing the proportional size of values in physical space?
Tree map
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
The firm practice of monitoring competitors, customers and suppliers to better understand its opportunities and threats is called __________.
data analytics
Machine learning, artificial intelligence and decision support systems are all examples of _____ analytics.
prescriptive
According to Exhibit 4.3, conventional and static charts would be considered to be declarative and ____________.
quantitative
Data that has a meaningful difference between data points is considered
quantitative data.
The trend line in your chart should take up to _______% of the chart.
66%
The second step in the ETL process
Obtain the Data
The "T" as part of the IMPACT cycle stands for:
Track Outcomes
Descriptive attribute
attributes that exist to provide business information
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 accuracy of the audit
Identifying trends over time is best visualized in a _____.
line chart
The fourth step in the ETL process
Clean the Data
The first step of classification
Identify the classes you wish to predict
The first step in the IMPACT cycle is:
Identify the question
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
Which of the following is not an existing Audit Data Standard?
Manufacturing subledger
What is a common use of color when designing accessible dashboards?
Red, yellow, and green traffic lights.
What type of database are you most likely to come across when extracting and using accounting and financial data?
Relational
Which of the following is an example of continuous data?
Turnover ratio
Any transaction that has a Z-score of ____ or above would represent abnormal transactions.
3
According to the text, cleaning the data takes between ____ and ____ percent of data analytic professional's time.
50; 90
What is a common difference between a bar chart and a pie chart?
A bar chart can easily show comparisons, where a pie chart cannot.
Asking colleagues what they think of the analysis would be considered to be part of which stage of the IMPACT cycle.
Address and Refine Results
Slicing and dicing the data, finding correlations, revising and rerunning the analysis would be considered to be part of which stage of the IMPACT cycle.
Address and Refine Results
Which would not be considered as one of the seven skills that analytic-minded accountants should have?
Become a data scientist
Which of the following is an example of discrete data?
Birth date
Foreign Key
Carries out the relationship between two tables
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? Multiple choice question. Profiling
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
Data Visualization would be part of which step of the IMPACT cycle?
Communicate Insights
Deciding whether to use declarative and exploratory visualizations fit in which phase of the IMPACT model?
Communicate Results
The process of evaluating data with the purpose of drawing conclusions to address business questions is defined as:
Data Analytics
Which would not be considered as one of the seven skills that analytic-minded accountants should have?
Data description
_____ are used to make communication easier between the data requester and the data provider.
Data request forms
______ are designed to be interactive and adapt to the information collected by the user.
Decision support systems
Which of the following is not a step for cleaning the data?
Deleting any results that are unfavorable to the results you were hoping to retrieve
The first step in the ETL process
Determine the Purpose and Scope of Data Request
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 is not one of the considerations for determining the purpose and scope of the data request?
Determining how the data will be cleaned.
Which of the following steps is completed during the Communicate Results stage of the IMPACT model?
Determining if you are explaining the results of previously done analysis, or if you are exploring the data through the visualization.
While SQL can be used to create, update, and delete records, we will focus on doing which of the following with SQL?
Extracting data
What type of information would be useful to communicate a data analysis project to a programmer or database administrator?
Extraction, transforming, and loading details
True or false: Data analytics involves only the analysis of unstructured data.
False
True or false: Data visualizations are just for "visual" learners.
False
True or false: It is important that your data visualizations look pretty so people will read them.
False
True or false: When clustering works well, observations within a segment should be different, and the data across segments should be very similar.
False
Which of the following visualizations is useful for showing the relative spending of customers in different locations?
Filled geographic map
The second step in data reduction
Filter the results
After you have identified the attribute you would like to reduce or focus on, what is the next step?
Filter the results.
In which format do analysts typically prefer to analyze data?
Flat file (such as Excel)
The last step in data reduction
Follow up on the results
Which type of attribute is required to facilitate a relationship between two tables in a normalized, relational database?
Foreign Key
The fifth step of classification
Generate your model
Which of the following common visualizations is most useful for showing the relative size of a value by using a color scale.
Heat map
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.
The third step in data reduction
Interpret the results
The last step of classification
Interpret the results and select the "best" model
Which of the following is true regarding the profiling approach?
It is generally performed on data that is readily available.
What is a benefit of storing data in a relational database?
It maintains "one version of the truth" across multiple data elements.
Which of the following is true regarding the Data Reduction approach?
It primarily uses structured data that is readily searchable.
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
Which of the following visualizations is useful for showing the change in stock price over time?
Line chart
Which of these charts does not do a good job visually representing qualitative data?
Line graph
The finals step in the ETL process
Load the Data for Data Analysis
_____ 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
After you have identified the classes you wish to predict, what is the next step?
Manually classify an existing set of records.
ETL (Extraction, Transformation and Loading) would be an example of which step in the IMPACT cycle?
Master the Data
Reviewing data availability in a firm's internal and external systems would be an example of which step in the IMPACT cycle?
Master the Data
After "Identifying the Question", the next step in the IMPACT cycle is to:
Master the data
__________ data include data that contains simple data such as categories, gender, or ethnic group.
Nominal
If the rank or order of the data matters, what kind of data are you working with?
Ordinal data
__________________ discovered from past archives enable business to identify opportunities and risks and better plan for the future.
Patterns
Which type of attribute is required in each table in a normalized, relational database?
Primary Key
_____ 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
Which of the following options are possible answers to the question 'What type of data are being analyzed'?
Quantitative and Qualitative
Which of the following visualizations is useful for showing the relationship between income and spending?
Scatter plot
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
When you need to extract data from more than one table in a SQL query, what do you need to identify in order to properly join the tables?
The two fields that the tables have in common.
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 clustering?
To identify groups of similar data elements and the underlying drivers of these groups.
What is the purpose of a data request form?
To make communication easier between data requester and provider.
What is the purpose of classification?
To predict which class an observation that we know little about will belong to.
Which of the following is a reason to use a declarative visualization?
To prompt conversation and debate
A digital dashboard would be part of which step of the IMPACT cycle?
Track Outcomes
Which of the following is not one of the means of cleaning the data after extraction and validation?
Transform the data into a usable form
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
True or false: Exploratory visualization aligns with performing the test plan, gaining insights while you are interacting with the data.
True
True or false: When extracting data yourself, you should consider identifying the tables that contain the information you need.
True
True or false: When there are many categories, it may make sense to use a rank-ordered bar chart rather than a pie chart.
True
Primary Key
Unique Identifier for each record in a table
The third step in the ETL proccess
Validate the Data for Completeness and Integrity
The 3 V's describing Big Data include: Velocity, Variety and ________________.
Volume
When determining the data scale, which of the following decisions is relevant?
What is the context? Will the data be skewed? Are there outliers?
Which of the following common visualizations is most useful for showing the frequency of words in a document?
Word cloud
A _________ is used to convert the mean of a distribution to 0 and 1 for each standard deviation.
Z-score
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 ____________ of the audit.
accuracy
When revising your data analysis plan and communications, it is always a good idea to
ask others to read your writing and make sure it is clear.
Visualizations should help ______.
avoid bias. minimize distractions. share information in a clear, concise manner.
Comparisons are best visualized in a _____.
bar chart
Data sets that are too large and complex for businesses' existing systems to handle are called _______________.
big data
An attempt to assign each unit (or individual) in a population into a few categories would be called the _____________ approach.
classification
All of the following are considered to be steps for validating the data after extraction except the following:
clean leading zeroes and nonprintable characters
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
Data that are represented by values within a range and include decimals, such as measurements in inches, are considered.
continuous data.
Excel is more useful than Tableau if your data analysis project is more _______________.
declarative.
As Justin Zobel says in Writing for Computer Science, "good style for science is ultimately, nothing more than writing that is easy to understand. [It should be] clear, unambiguous, correct, interesting, and ___________.
direct
Data that are represented by whole numbers, like points in a game, are considered
discrete data.
Standardized data has the benefit of being able to more easily compare _____________ datasets that otherwise might be difficult to compare.
dissimilar
Tableau is more useful than Excel if your data analysis project is more _________________.
exploratory.
Audit firms are increasingly considering operational data such as manufacturing logs, customer relationship management data and supply chain data primarily to ______________________:
help companies refine their operations
Communicating to colleagues in a business setting should be all but the following:
indirect
With ________ data the number 0 is just another value on a scale and has no special meaning.
interval
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)
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 _____ the data.
overfitting
Qualitative data are most easily expressed as ____________ data.
ratio
An attempt to estimate or predict, for each unit, the numerical value of some variable using some type of statistical model would be called the _____________ approach.
regression
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
In a significant paradigm shift, data analytics will allow auditors to:
stay engaged with clients beyond the audit
Consider the knowledge and skill of your audience, by not overwhelming a nontechnical crowd with __________ .
technical jargon
What is XBRL used for?
to facilitate the exchange of financial reporting information between a company and the SEC.
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, __________, and accuracy of the audit.
transparency
McKinsey Global Institute estimates that Data Analytics could generate up to $3 _____ in value each year.
trillion
Revising and refining your testing are in what stage of the IMPACT model?
Address and refine results
The fourth step of classification
Divide your data into training and testing sets
When is a primary key required?
Every table in a relational database requires a primary key.
The second step of classification
Manually classify an existing set of records
The third step of classification
Select a set of classification models
