SOLUTION MANUAL for Data Analytics for Accounting,
3rd Edition by Vernon Richardson, Chapters 1 - 9
1
,TABLE OF CONTENTS
Chapter 1: Data Analytics for Accounting and Identifying the Questions
Chapter 2: Mastering the Data
Chapter 3: Performing the Test Plan and Analyzing the Results
Chapter 4: Communicating Results and Visualizations
Chapter 5: The Modern Accounting Environment
Chapter 6: Audit Data Analytics
Chapter 7: Managerial Analytics
Chapter 8: Financial Statement Analytics
Chapter 9: Tax Analytics
2
,Solutions Manual – Chapter 1
Solutions to Multiple Choice Questions
1. (LO 1-1) Big Data is often described by the four Vs, or
a. volume, velocity, veracity, and variability.
b. volume, velocity, veracity, and variety.
c. volume, volatility, veracity, and variability.
d. variability, velocity, veracity, and variety.
Answer: b
2. LO 1-4) Which data approach attempts to assign each unit in a population into a small set ofclasses (or
groups) where the unit best fits?
a. Regression
b. Similarity matching
c. Co-occurrence grouping
d. Classification
Answer: d
3. (LO 1-4) Which data approach attempts to identify similar individuals based on data knownabout
them?
a. Classification
b. Regression
c. Similarity matching
d. Data reduction
Answer: c
4. (LO 1-4) Which data approach attempts to predict connections between two data items?
a. Profiling
b. Classification
c. Link prediction
d. Regression
3
, Answer: c
5. (LO 1-6) Which of these .terms .is .defined .as .being .a .central .repository .of .descriptions .for .all .of.the
.data .attributes .of .the .dataset?
a. Big .Data
b. Data .warehouse
c. Data .dictionary
d. Data .Analytics
Answer: .c
6. (LO .1-5) .Which .skills .were .not .emphasized .that .analytic-minded .accountants .should .have?
a. Developed .an .analytics .mindset
b. Data .scrubbing .and .data .preparation
c. Classification .of .test .approaches
d. Statistical .data .analysis .competency
Answer: .c
7. (LO .1-5) .In .which .areas .were .skills .not .emphasized .for .analytic-minded .accountants?
a. Data .quality
b. Descriptive .data .analysis
c. Data .visualization .and .data .reporting
d. Data .and .systems .analysis .and .design
Answer: .d
8. (LO .1-4) .The .IMPACT .cycle .includes .all .except .the .following .steps:
a. perform .test .plan.
b. visualize .the .data.
c. master .the .data.
d. track .outcomes.
Answer: .b
9. (LO .1-4) .The .IMPACT .cycle .specifically .includes .all .except .the .following .steps:
a. data .preparation.
b. communicate .insights.
c. address .and .refine .results.
d. perform .test .plan.
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3rd Edition by Vernon Richardson, Chapters 1 - 9
1
,TABLE OF CONTENTS
Chapter 1: Data Analytics for Accounting and Identifying the Questions
Chapter 2: Mastering the Data
Chapter 3: Performing the Test Plan and Analyzing the Results
Chapter 4: Communicating Results and Visualizations
Chapter 5: The Modern Accounting Environment
Chapter 6: Audit Data Analytics
Chapter 7: Managerial Analytics
Chapter 8: Financial Statement Analytics
Chapter 9: Tax Analytics
2
,Solutions Manual – Chapter 1
Solutions to Multiple Choice Questions
1. (LO 1-1) Big Data is often described by the four Vs, or
a. volume, velocity, veracity, and variability.
b. volume, velocity, veracity, and variety.
c. volume, volatility, veracity, and variability.
d. variability, velocity, veracity, and variety.
Answer: b
2. LO 1-4) Which data approach attempts to assign each unit in a population into a small set ofclasses (or
groups) where the unit best fits?
a. Regression
b. Similarity matching
c. Co-occurrence grouping
d. Classification
Answer: d
3. (LO 1-4) Which data approach attempts to identify similar individuals based on data knownabout
them?
a. Classification
b. Regression
c. Similarity matching
d. Data reduction
Answer: c
4. (LO 1-4) Which data approach attempts to predict connections between two data items?
a. Profiling
b. Classification
c. Link prediction
d. Regression
3
, Answer: c
5. (LO 1-6) Which of these .terms .is .defined .as .being .a .central .repository .of .descriptions .for .all .of.the
.data .attributes .of .the .dataset?
a. Big .Data
b. Data .warehouse
c. Data .dictionary
d. Data .Analytics
Answer: .c
6. (LO .1-5) .Which .skills .were .not .emphasized .that .analytic-minded .accountants .should .have?
a. Developed .an .analytics .mindset
b. Data .scrubbing .and .data .preparation
c. Classification .of .test .approaches
d. Statistical .data .analysis .competency
Answer: .c
7. (LO .1-5) .In .which .areas .were .skills .not .emphasized .for .analytic-minded .accountants?
a. Data .quality
b. Descriptive .data .analysis
c. Data .visualization .and .data .reporting
d. Data .and .systems .analysis .and .design
Answer: .d
8. (LO .1-4) .The .IMPACT .cycle .includes .all .except .the .following .steps:
a. perform .test .plan.
b. visualize .the .data.
c. master .the .data.
d. track .outcomes.
Answer: .b
9. (LO .1-4) .The .IMPACT .cycle .specifically .includes .all .except .the .following .steps:
a. data .preparation.
b. communicate .insights.
c. address .and .refine .results.
d. perform .test .plan.
4
