CH.1 Analytics in Accounting and Business

Data Analytics could generate up to ________ in value per year.

$3 trillion

The first step in the IMPACT cycle is:

identify the question

Traditional audit approaches tested data ____________ of the transactions;, in contrast , audits that fully integrates big data and analytics will test the full _____________ of data.

sample; population

By the year 2020 , about 1.7 megabytes of new information will be created every:

second

Which approach to Data Analytics attempts to identify similar individuals based on data known about them?

similarity matching

Data Analytics may use what sources to assess the probability of a goodwill write-down, warranty claims or the collectibility of bad debts?

social media

In a significant paradigm shift, data analytics will allow auditors to:

stay engaged with clients beyond the audit

Data Analytics

the process of evaluating data with the purpose of drawing conclusions to address business questions.

As part of mastering the data, data analysts perform data __________ to provide a sense of reliability of the data

validation and completeness

Classification

A data approach that attempts to assign each unit in a population into a few categories potentially to help with predictions

seven skills that analytic-minded accountants should have:

Develop an analytics mindset Data scrubbing and data preparation Data quality Descriptive data analysis Data analysis through data manipulation Define and address problems through statistical data analysis Data visualization and data reporting

Big Data

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

Which approach to Data Analytics attempts to predict relationship between two data items?

link prediction

Accountants must know how to:

-clearly articulate business problem -communicate with data scientists -draw appropriate conclusions -present results in accesible manner

Impact Cycle

1.Identify the questions 2.master the data 3.perform test plan 4. address and refine the results 5. communicate insights 6. track outcomes

7 skills accountants should have

1.develop an analytic mindset 2. data scrubbing and data preparation 3.data quality 4. descriptive data analysis 5.data analysis through data manipulation 6.define and address problems through statistical data analysis 7. data visualization and reporting

________of CEOs place data mining and analysis as the second-most important strategic technology.

80%

_______ of CEOs put a high value on Data Analytics.

85%

Co-ocurrence grouping

A data approach that attempts to discover associations between individuals based on transactions involving them

Clustering

A data approach that attempts to divide individuals into groups in a useful or meaningful way

data dictionary

Centralized repository of descriptions for all of the data attributes of the dataset.

The 3Vs describing Big Data include

Volume Velocity Variety

Profiling

a data approach that attempts to characterize the "typical" behavior of an individual, group, or population by generating summary statistics about the data (mean, standard deviation)

regression

a data approach that attempts to estimate or predict , for each unit, the numerical value of some variable using some type of statistical model

similarity matching

a data approach that attempts to identify similar individuals based on data known about them

Link Prediction

a data approach that attempts to predict a relationship between two data items

Data reduction

a data approach that attempts to reduce the amount of information that needs to be considered to focus on the most critical items (highest cost, highest impact)

predictor (independent/explanatory) variable

a variable that predicts or explains another variable

response (dependent) variable

a variable that responds to or is dependent of another

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?

adress and refine results

An attempt to assign each unit in a population into a few categories would be called the ____________ approach

classification

Which approach to Data Analytics attempts to assign each unit in a population into a smaller set of classes where the unit belongs?

classification

Which skills were not emphasized that analytic-minded accountants should have?

classification of test approaches

Which testing approach would be considered to be an attempt to discover associations between individuals based on transactions involving them?

co-ocurrence grouping

Which skills were not emphasized that analytic-minded accountants should have?

data and systems analysis and design

Which of this terms is defined as being a central repository of descriptions for all the data attributes of the data set?

data dictionary