Solution manual for data analytics for accounting 3rd edition by Vernon Richardson

SOLUTION MANUAL
Data Analytics for Accounting, 3rd Edition
by Vernon Richardson, Chapters 1 - 9




1

,Chapter 1: Data Analytics for Accounting and Identifying the Questions Chapter 2: Mastering the Data
e e e e e e e e e e e e e e




Chapter 3: Performing the Test Plan and Analyzing the Results Chapter 4: Communicating Results and
e e e e e e e e e e e e e e




Visualizations
e




Chapter 5: The Modern Accounting Environment Chapter 6: Audit Data Analytics
e e e e e e e e e e




Chapter 7: Managerial Analytics
e e e




Chapter 8: Financial Statement Analytics Chapter 9: Tax Analytics
e e e e e e e e




Solutions Manual – Chapter 1
e e e e




Solutions to Multiple Choice Questions
e e e e




1. (LO 1-1) Big Data is often described by the four Vs, or
e e e e e e e e e e e




a. volume, velocity, veracity, and variability.
e e e e


b. volume, velocity, veracity, and variety.
e e e e


c. volume, volatility, veracity, and variability.
e e e e


d. variability, velocity, veracity, and variety. e e e e




Answer: b e




2. LO 1-4) Which data approach attempts to assign each unit in a population into a small set ofclasses (or
e e e e e e e e e e e e e e e e e e


groups) where the unit best fits?
e e e e e e




a. Regression
b. Similarity matching e


c. Co-occurrence grouping e


d. Classification

Answer: d e




3. (LO 1-4) Which data approach attempts to identify similar individuals based on data knownabout
e e e e e e e e e e e e e


them?
e




a. Classification
b. Regression
c. Similarity matching e


d. Data reduction e




Answer: c e




4. (LO 1-4) Which data approach attempts to predict connections between two data items?
e e e e e e e e e e e e




a. Profiling
b. Classification
c. Link prediction e




2

, d. Regression
Answer: c e




5. (LO 1-6) Which of these terms is defined as being a central repository of descriptions for all of the data
e e e e e e e e e e e e e e e e e e e


attributes of the dataset?
e e e e




a. Big Datae


b. Data warehouse
e


c. Data dictionary
e


d. Data Analytics
e




Answer: c e




6. (LO 1-5) Which skills were not emphasized that analytic-minded accountants should have?
e e e e e e e e e e e




a. Developed an analytics mindset e e e


b. Data scrubbing and data preparation
e e e e


c. Classification of test approaches e e e


d. Statistical data analysis competencye e e




Answer: c e




7. (LO 1-5) In which areas were skills not emphasized for analytic-minded accountants?
e e e e e e e e e e e




a. Data qualitye


b. Descriptive data analysis e e


c. Data visualization and data reporting
e e e e


d. Data and systems analysis and design
e e e e e




Answer: d e




8. (LO 1-4) The IMPACT cycle includes all except the following steps:
e e e e e e e e e e




a. perform test plan. e e


b. visualize the data. e e


c. master the data. e e


d. track outcomes.
e




Answer: b e




9. (LO 1-4) The IMPACT cycle specifically includes all except the following steps:
e e e e e e e e e e e




a. data preparation. e


b. communicate insights. e


c. address and refine results. e e e


d. perform test plan. e e


Answer: a e




3