ACCT 310 - Ch. 10

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) "What-if" business forecasting.

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 C) Ensure the data is not outdated.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) Analyze the data.

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) Data storage capacity and processing power.

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) Dictate the policies of external business partners.

Which of the following would not help create an 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) Ensuring the data has integrity.

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) Evaluation of estimates and valuations.

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) The process of data analytics aims at transforming raw data into valuable information.

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) Why is our newest product not selling as expected in Kentucky?

Which of the following best describes 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) Acquiring/cleansing data; Creating data structures/models; Mining/analyzing data.

Which of the following is the best definition of the term 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) Datasets that are too large and complex for businesses' existing systems utilizing traditional capabilities.

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) Diagnostic.

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) Extract, Transform, and Load.

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.

B) More time spent gathering and testing data.

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

C) 50-90%

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) A set of standards for data files and fields designed to support external audits.

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) Ask the right question.

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 collectability of accounts receivable balances. C) Automate the order entry process for online customers. D) Assess property, plant, and equipment values based on current comparable prices.

C) Automate the order entry process for online customers.

Which of the following is NOT one of the skill sets often associated with data analytics? A) Mining and analyzing data B) Creating data structures and models. C) Bifurcating data. D) Acquiring and cleansing data.

C) Bifurcating data.

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

C) Binary.

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) By examining data to generate models for predictions of patterns and trends.

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) Data serviceability.

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, and variety. B) Variety, visibility, velocity, and valuation. C) Volume, veracity, velocity, and variety. D) Volume, variability, variety, and veracity.

C) Volume, veracity, velocity, and variety.

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 and Load (ETL). B) Online Analytical Processing (OLAP). C) Audit Control Language (ACL). D) Audit Data Standards (ADS).

D) Audit Data Standards (ADS).

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) Collectability of Loans Receivable.

D) Collectability of Loans Receivable.

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) External auditors will stay engaged with clients beyond the audit.

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) Parse the data.

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

D) Prescriptive.

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

D) Prescriptive.

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) Reductive.

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 conclusions for decision making. C) The process of organizing extremely large datasets to create more manageability. D) The science of examining raw data, removing excess noise, and organizing it in order to draw conclusions for decision making.

D) The science of examining raw data, removing excess noise, and organizing it in order to draw conclusions for decision making.