Test Bank - Data Analytics for Accounting, 3rd Edition By Vernon Richardson
Chapter01
TRUE/FALSE -Write'T'if thestatementis trueand 'F' if thestatement is false.
1) Data analyticsis the process of evaluatingdata withthe purpose of drawingconclusions toaddress
business questions.
⊚ true
⊚ false
2) Theprocessofdata analytics aims to transformraw informationinto datato createvalue.
⊚ true
⊚ false
3) Dataanalyticshas the potential totransform the mannerin which companiesruntheir businesses,
ff
however it is not practical in the near future.
⊚ true
⊚ false
4) Auditors can use social media to hear what customers aresayingabout a companyand compare thisto
inventory obsolescence and other estimates.
⊚ true
⊚ false
5) Data analytics allows auditorsto glean insightsthatare beneficial to the client,without breeching
independence.
⊚ true
⊚ false
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,6) The predictive analyticsis animportant aspect of data analyticsforauditors, but isnotapplicable for tax
accountants.
⊚ true
⊚ false
7) TheIin IMPACT Cyclerepresents Identifythe Question.
⊚ true
⊚ false
8) TheM in IMPACT Cycle represents Masterthe Data.
⊚ true
⊚ false
9) ThePin IMPACT CyclerepresentsPredict the Results.
⊚ true
⊚ false
10) TheAin IMPACT Cycle represents Analyze the Data.
⊚ true
⊚ false
11) TheCinIMPACT Cycle represents ContinuouslyTrack.
⊚ true
⊚ false
12) TheT in IMPACT Cycle representsTrackOutcomes.
⊚ true
2|P a g e
,⊚ false
13) TheIMPACT cycle is iterative, asinsights are gained, outcomes aretracked, and newquestionsare
identified.
⊚ true
⊚ false
14) Data analysis through data manipulationisperformingbasic analysisto understandthe qualityof the
underlying data and its ability to address the business question.
⊚ true
⊚ false
15) Tobeproficientin dataanalysis, accountants needto become datascientists.
⊚ true
⊚ false
16) Bydevelopingananalytics mindset, accountants will beable torecognize when and howdata
analytics can address business questions.
⊚ true
⊚ false
17) While itisimportant for accountants to clearlyarticulatethe business problem, drawingappropriate
conclusions, based on the data, should be left to statisticians.
⊚ true
⊚ false
3|P a g e
, 18) Analytic-mindedaccountants shouldreport resultsof analysisinan accessiblewayto each varied
decision maker and their specific needs.
⊚ true
⊚ false
MULTIPLECHOICE-Choose the one alternativethat best completes the statement oranswers the
question.
19) With a goalto give organizationstheinformation theyneed tomake sound and timelybusiness
decisions, data analytics often involves all of the following except:
A) technologies.
B) statistics.
C) strategies.
D) databases.
20) Patterns discovered from blankenablebusinessestoidentifyopportunitiesandrisksand
better plan for blank.
A) pastarchives; the future
B) current data; the future
C) current data; today
D) pastarchives; today
21) Whichof the followingbest describes the goal of descriptive data analysis:
A) recognizewhatis meant bydataquality, be it completeness,reliabilityor validity
B) performbasicanalysis to understand the qualityof the underlyingdata and its abilityto address the
business question
C) demonstrateabilityto sort,rearrange, merge, and reconfigure dataina mannerthat allows
enhanced analysis
D) comprehendtheprocess neededto cleanand preparethe data before analysis
4|P a g e
Chapter01
TRUE/FALSE -Write'T'if thestatementis trueand 'F' if thestatement is false.
1) Data analyticsis the process of evaluatingdata withthe purpose of drawingconclusions toaddress
business questions.
⊚ true
⊚ false
2) Theprocessofdata analytics aims to transformraw informationinto datato createvalue.
⊚ true
⊚ false
3) Dataanalyticshas the potential totransform the mannerin which companiesruntheir businesses,
ff
however it is not practical in the near future.
⊚ true
⊚ false
4) Auditors can use social media to hear what customers aresayingabout a companyand compare thisto
inventory obsolescence and other estimates.
⊚ true
⊚ false
5) Data analytics allows auditorsto glean insightsthatare beneficial to the client,without breeching
independence.
⊚ true
⊚ false
1|P a g e
,6) The predictive analyticsis animportant aspect of data analyticsforauditors, but isnotapplicable for tax
accountants.
⊚ true
⊚ false
7) TheIin IMPACT Cyclerepresents Identifythe Question.
⊚ true
⊚ false
8) TheM in IMPACT Cycle represents Masterthe Data.
⊚ true
⊚ false
9) ThePin IMPACT CyclerepresentsPredict the Results.
⊚ true
⊚ false
10) TheAin IMPACT Cycle represents Analyze the Data.
⊚ true
⊚ false
11) TheCinIMPACT Cycle represents ContinuouslyTrack.
⊚ true
⊚ false
12) TheT in IMPACT Cycle representsTrackOutcomes.
⊚ true
2|P a g e
,⊚ false
13) TheIMPACT cycle is iterative, asinsights are gained, outcomes aretracked, and newquestionsare
identified.
⊚ true
⊚ false
14) Data analysis through data manipulationisperformingbasic analysisto understandthe qualityof the
underlying data and its ability to address the business question.
⊚ true
⊚ false
15) Tobeproficientin dataanalysis, accountants needto become datascientists.
⊚ true
⊚ false
16) Bydevelopingananalytics mindset, accountants will beable torecognize when and howdata
analytics can address business questions.
⊚ true
⊚ false
17) While itisimportant for accountants to clearlyarticulatethe business problem, drawingappropriate
conclusions, based on the data, should be left to statisticians.
⊚ true
⊚ false
3|P a g e
, 18) Analytic-mindedaccountants shouldreport resultsof analysisinan accessiblewayto each varied
decision maker and their specific needs.
⊚ true
⊚ false
MULTIPLECHOICE-Choose the one alternativethat best completes the statement oranswers the
question.
19) With a goalto give organizationstheinformation theyneed tomake sound and timelybusiness
decisions, data analytics often involves all of the following except:
A) technologies.
B) statistics.
C) strategies.
D) databases.
20) Patterns discovered from blankenablebusinessestoidentifyopportunitiesandrisksand
better plan for blank.
A) pastarchives; the future
B) current data; the future
C) current data; today
D) pastarchives; today
21) Whichof the followingbest describes the goal of descriptive data analysis:
A) recognizewhatis meant bydataquality, be it completeness,reliabilityor validity
B) performbasicanalysis to understand the qualityof the underlyingdata and its abilityto address the
business question
C) demonstrateabilityto sort,rearrange, merge, and reconfigure dataina mannerthat allows
enhanced analysis
D) comprehendtheprocess neededto cleanand preparethe data before analysis
4|P a g e
