Test 3 AIS REVIEW

Deep learning is best described as: A) A form of machine learning that involves complex, multilayer neural networks. B) A form of machine learning that involves hidden neural networks. C) A form of learning based on regression analysis. D) A form of reinforcement learning.

A

If a machine learns by trial and error, it is using: A) Reinforcement Learning. B) Confusion Learning. C) Semi-Supervised Learning. D) Matrix Learning.

A

In which of the following situations would blockchain add value? A) Multiple parties that do not trust each other want to collaborate. B) Management would like to automate routine tasks. C) A prediction on weather related losses is needed. D) Contracts need to be reviewed for revenue recognition.

A

The four Vs are considered a defining feature of big data. Which of the following is the best definition of the term big data? A) Volition, veracity, velocity & variety. B) Variety, visibility, volocity & valuation. C) Volume, veracity, velocity, & variety. D) Volume, variability, variety & veracity.

C

What is not a general function of blockchain technology? A) Transfer digital assets. B) Authenticate identities. C) Generation of bitcoin. D) Ability to create value.

C

When using an analytical mindset which of the following is the first task? A) Master the data. B) Share the story. C) Ask the right question. D) Request data.

C

Which of the following does not desribe characteristics of the AMPS model? A) Iterative. B) Can lead to asking deeper questions. C) Binary. D) Leaves the decision maker more knowledgable.

C

A benefit of blockchain is the lowered cost of processing transactions. true false

T

A use case for blockchain may exist wherever there is a significant cross-organization workflow. true false

T

Artificial neural networks are the engines of machine learning. true false

T

Audit data standards (ADS) are standards for data files and fields typically needed to support an external audit in a given finan busin process area. true

T

Alexa from Amazon and Siri from Apple are examples of robotic process autoanon.

F

Blockchain is a highly regulated technology. true false

F

Consortium blockchain has no access restrictions in relation to viewing or participating in the blockchain network. true false

F

Data analytics can provide deep insight into financial data, but is not particularly useful when evaluating non-financial data such as social media. T ot false

F

Data analytics is used to publish historical information. T or f

F

During the second stage of the AMPS model a business analyst would likely only gather data meeting Audit Data Standards. T o f

F

Ethereum is a type of artificial intelligence. true false

F

Machine learning requires less data than general Artificial Intelligence. true false

F

The "M" in the AMPS model stands for "Manipulate the Data". T or f

F

39) When an accounting team automates account reconciliations this is an example of: A) Robotic process automation. B) Spreadsheet automation. C) Natural language automation. D) Internet automation.

A

Artificial Intelligence can include all of the following except: A) Database programming. B) Visual perception. C) Logical thinking . D) Language translation.

A

At its core, data analytics fits into the information value chain in which of the following ways? A) The process of data analytics aims at transforming raw data into valuable information. B) Data analytics aims to make an organization's conversion process more efficient. C) Data analytics requires organizations to share synced data with upstream and downstream business partners. D) The process of data analytics is geared toward providing additional insight into customer activities and preferences.

A

Data analytics can help in accurately identifying organizational risks. All of the following are examples of such risk except: A) "What-if" business forecasting. B) Identifying security breaches. C) Identifying flawed business processes. D) Monitoring compliance with regulatory requirements.

A

Satoshi Nakamoto used all of the following when creating a distributed ledger system except: A) Confusion Matrix. B) Resource intensive mining. C) Peer-to-peer transactions. D) Open participation.

A

The insight provided through data analytics can help companies in all of the following ways except: A) Dictate the policies of external business partners. B) Create more directed marketing campaigns. C) Identify future opportunities and risks. D) Affect internal business processes in order to improve productivity, utilization and growth.

A

The use of data analytics will likely result in significant changes to clients' expectations of their auditors. Which of the following is most likely not one of those expected changes? A) More innovative thinking. B) More time spent gathering and testing data. C) Deeper and broader insights. D) Faster and more efficient delivery of audit findings.

A

To be considered blockchain a technology must have all of the following except: A) Rewardability. B) Consensus. C) Immutability. D) Decentralization.

A

Which of the following areas of financial reporting is most suitable for applying data analytics techniques? A) Evaluation of estimates and valuations. B) Variance reporting. C) Calculating the components of equity. D) Depreciation.

A

Which of the following best summarizes the two key limiting factors for business systems when dealing with Big Data? A) Data storage capacity and processing power. B) Data availability and software tools. C) Database organization and transaction volume. D) Analytic skills and software tools.

A

Which of the following is an example of an appropriate question to begin analyzing a business problem? A) Why is our newest product not selling as expected in Kentucky? B) Why is net income declining? C) How can we increase employee morale in North Carolina? D) Can we use confidential data?

A

Which of the following is not a consensus algorithm? A) Proof of miner. B) Proof of work. C) Proof of authority. D) Proof of stake.

A

Which of the following is not benefit of blockchain? A) Past information is easily edited. B) New transactions are propagated to all participants. C) Consensus must be reached to propagate transactions. D) Participating parties do not need to trust each other.

A

Which of the following is the best description of neural networks? A) Mathematical models that convert inputs to outputs/predictions. B) Intelligence exhibited by machines rather than humans. C) A blockchain network where participants need permission to join the network. D) A ledger where individual entries are separate in time and location.

A

Which of the following is the least likely use case for implementing blockchain? A) A grocery store would like to modernize their payroll systems .B) A county would like to modernize how auto titles are transferred. C) A foreign goods importer would like to track their product as they move to the United States. D) American Express would like multiple vendors to allow customers to pay loyalty points.

A

Which of the following should an analyst not do when on the second step of the AMPS model, mastering the data? A) Analyze the data. B) Analyze the cost versus the value of obtaining needed data. C) Ensure the data is not outdated. D) Assess privacy concerns with the data.

A

Which of the following would not help create a appropriate question in the AMPS model? A) Ensuring the data has integrity. B) Making the statement succinct. C) Narrowing the scope of the question. D) Knowledge of business processes.

A

Which type of blockchain would an accounting department of a large international firm set up to track control testing? A) Private. B) Public. C) Consortium. D) Supply Chain Block.

A

If a machine is attempting to reduce the dimensions in a dataset it is using: A) Reinforcement Learning. B) Unsupervised Learning. C) Supervised Learning. D) Matrix Learning.

B

Raw data often must be scrubbed to remove extraneous data and other noise in order to become useful. This technique is known as: A) Process, Scrub, and Import. B) Extract, Transform, and Load. C) Evaluate, Depopulate, and Finalize. D) Filter, Coordinate, and Upload.

B

Which of the following best desribes the skill sets used in data analytics? A) Building data warehouses; Populating data structures; Mining the data. B) Acquiring/cleansing data; Creating data structures/models; Mining/analyzing data. C) Developing data structures/models; Acquiring storage capacity; Analyzing the data. D) Creating data; Building data structures; Piloting data studies.

B

Which of the following best represents the virtuous cycle of machine learning? A) Input customer purchase data Predict future purchases Learn pattern. B) Input customer purchase data Learn pattern→Predict future purchases. C) Predict pattern Input purchase data Learn pattern. D) Predict outcome-Input data-Learn mistakes.

B

Which of the following is a definition for big data? A) Databases measured in terms of zettabytes. B) Datasets that are too large and complex for businesses' existing systems utilizing traditional capabilities. C) Databases for businesses that generate more than one million electronic transactions per month. D) Datasets generated by social media applications such as Facebook, Twitter, Tencent QQ, and Instagram.

B

Which one of the following is not an example of machine learning assisting in an audit? A) Reviewing journal entries. B) Reviewing organization charts. C) Reviewing cash transactions. D) Reviewing journal entry descriptions.

B

Which statement below describes the relationship between artificial intelligence and machine learning? A) Artificial intelligence is like a city and machine learning is like the state. B) Artificial intelligence is like a database and machine learning is like a table in the database. C) Machine learning is like a library and artificial intelligence is like a book. D) Machine learning is like the general ledger and artificial intelligence is like an account.

B

Which type of analysis assists with understanding why something happened during the third step of the AMPS model, performing the analysis? A) Descriptive. B) Diagnostic. C) Predictive. D) Prescriptive.

B

Which type of blockchain offers economic reward for the computational proof of work in mining? A) Private. B) Public. C) Consortium. D) Supply Chain Block.

B

35) When a bank has an input file of FICO scores and uses machine learning to help predict credit losses for each customer, they are likely using which type of learning? A) Reinforcement Learning. B) Unsupervised Learning. C) Supervised Learning. D) Matrix Learning.

C

All of the following are challenges for auditors when auditing records residing in a blockchain network except: A) Programming skills may be needed. B) Complicated protocols may be difficult to understand. C) Smart contracts cannot be used as evidence. D) Converting traditional audit approaches to blockchain technology.

C

Blockchain was built to minimize the use of: A) US Dollars. B) Regulators. C) Intermediaries. D) Accountants.

C

Data analytics professionals estimate that they spend how much of their time cleaning data in order perform analysis on it? A) 10-15%. B) 20-30%, C) 50-90%. D) 99+%.

C

How do data analysts use confusion matrices? A) To predict a non-binary outcome. B) To predict a binary outcome. C) To underetandamedallediation results.

C

How does data analytics play a vital role in today's business world? A) By allowing data to be organized into predefined tables and fields. B) By defining three main categories of classes that help organize a company's data structure models. C) By examining data to generate models for predictions of patterns and trends. D) By capturing the ever-increasing transaction activity of large companies.

C

Smart contracts do all of the following except: A) Define terms. B) Define business rules. C) Define miners. D) Define transfer of assets

C

Which of the following best describes the AICPA's Audit Data Standards (ADS)? A) The base level of testing procedures that should be performed on AIS data. B) A set of analytic procedures designed to be used with modern ERPS' large datasets. C) A set of standards for data files and fields designed to support external audits. D) The codification of all auditing guidelines pertaining to the data generated by AISS.

C

Which of the following is a key difference between Bitcoin and Ethereum? A) Only Bitcoin uses blockchain technology. B) Only Bitcoin provides mining rewards. C) Ethereum employs smart contracts. D) Ethereum has no cryptocurrency.

C

Which of the following is not a good example of how accountants might use data analytics to help evaluate estimates used to value financial statement accounts? A) Assess the likelihood and level of expected warranty claims. B) Estimate the collectibility of accounts receivable balances. C) Automate the order entry process for online customers. D) Assess property, plant & equipment values based on current comparable prices.

C

Which of the following is not an example of data questions which arise during the second step of the AMPS model, mastering the data? A) Data reliability. B) Data integrity. C) Data serviceability. D) Data accessibility.

C

Which type of blockchain would a corporation and their key supplier set up to facilitate transactions? A) Private. B) Public. C) Consortium. D) Supply Chain Block.

C

As described in the text, which of the following best defines the term data analytics? A) The ability extra and load large datasets. B) The science of moving data from Access to Enterprise Reporting Tools to draw conculsions for decision making. C) The process of organizing extremely large datasets to create more managability. D) The science of examining raw data, removing excess noise, and organizing it in order to draw conclusions for decision making.

D

One of the largest challenges across the accounting industry for auditing firms which use blockchain is: A) Understanding business activities. В) Continuous monitoring. C) Deciphering cryptocurrency. D) A gap in skillset.

D

Which of the following best describes how external auditors' interactions with their clients is likely to change due to the use of data analytics in the audit process? A) External auditors will spend less time on audits and will not need to spend time with clients outside the audit. B) External auditors will spend more time on detailed audit tasks, resulting in longer audit engagements. C) External auditors will only interact with their clients virtually. D) External auditors will stay engaged with clients beyond the audit.

D

Which of the following is a set of standards created by the AICPA for data files and fields in order to support external audits? A) Extract, Transform & Load (ETL). B) Online Analytical Processing (OLAP). C) Audit Control Language (ACL). D) Audit Data Standards (ADS).

D

Which of the following is an example of natural language processing? A) A product that creates a language based confusion matrix. B) A product which provides voice and visual communications. C) A product which creates training manuals which are easy to understand. D) A product which reads contracts and helps accountants with revenue recognition.

D

Which of the following is not a part of the AMPS model? A) Ask the right questions. B) Share the story. C) Master the data. D) Parse the data.

D

Which of the following is not a type of analyses performed during the third step of the AMPS model, performing the analysis? A) Descriptive. B) Predictive. C) Prescriptive. D) Reductive.

D

Which of the following is not accurate regarding blockchain? A) Data is distributed safely. B) The technology uses cryptography. C) Consensus must be reached to propagate transactions. D) only the administration keeps a copy of the entire database

D

Which type of analysis assists with defining how to optimize performance based on a potential constraint? A) Descriptive. B) Diagnostic. C) Predictive. D) Prescrip

D

Which type of analysis assists with understanding what is happening right now? A) Descriptive. B) Diagnostic. C) Predictive. D) Prescriptive.

D

Which type of question would accountants most likely use data analytics to answer? A) Posting journal entries. B) Account reconciliation. C) Control framework definitions. D) Collectibility of Loans Receivable.

D

According to the results of the PWC's 18th Annual Global CEO Survey, CEO's aren't yet ready to place a high value on data analytics. T or f

F

The four Vs of big data are volume, vector, velocity, and veracity. T or f

F

The key difference between artificial intelligence applications and machine learning is that machine learning involves the computer learning from specific instructions versus experience. true false

F

Blockchain is only used for cryptocurrency. true false

False

Data analytics are likely to play a significant role in future audit activities. T or false

T

Smart contracts may be an opportunity for auditors as they contain business rules. true false

T

The cost of a false prediction is important to data analysts. true false

T

The process of scrubbing raw data to remove extraneous data and other noise in order to increase its usefulness is known as extract, transform and load. T or f

T

statement Datasets that are too large and complex for businesses' existing systems utilizing traditional capabilities are refered to as big data. Tor f

T