Data Analytics for Accounting, 3rd Edition – Complete Test Bank

,Answers are at the End of Each Chapter

Chapter 01:
Student name:
1) Data analytics is the process of evaluating data with the purpose of drawing conclusions
toaddress business questions.
⊚ true
⊚ false



2) The process of data analytics aims to transform raw information into data to create value.
⊚ true
⊚ false



3) Data analytics has the potential to transform the manner in which companies run
theirbusinesses, however it is not practical in the near future.
⊚ true
⊚ false



4) Auditors can use social media to hear what customers are saying about a company
andcompare this to inventory obsolescence and other estimates.
⊚ true
⊚ false



5) Data analytics allows auditors to glean insights that are beneficial to the client,
withoutbreeching independence.
⊚ true
⊚ false




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,6) The predictive analytics is an important aspect of data analytics for auditors, but is
notapplicable for tax accountants.
⊚ true
⊚ false



7) The I in IMPACT Cycle represents Identify the Question.
⊚ true
⊚ false



8) The M in IMPACT Cycle represents Master the Data.
⊚ true
⊚ false



9) The P in IMPACT Cycle represents Predict the Results.
⊚ true
⊚ false



10) The A in IMPACT Cycle represents Analyze the Data.
⊚ true
⊚ false



11) The C in IMPACT Cycle represents Continuously Track.
⊚ true
⊚ false



12) The T in IMPACT Cycle represents Track Outcomes.
⊚ true
⊚ false




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, 13) The IMPACT cycle is iterative, as insights are gained, outcomes are tracked, and
newquestions are identified.
⊚ true
⊚ false



14) Data analysis through data manipulation is performing basic analysis to understand
thequality of the underlying data and its ability to address the business question.
⊚ true
⊚ false



15) To be proficient in data analysis, accountants need to become data scientists.
⊚ true
⊚ false



16) By developing an analytics mindset, accountants will be able to recognize when and
howdata analytics can address business questions.
⊚ true
⊚ false



17) While it is important for accountants to clearly articulate the business problem,
drawingappropriate conclusions, based on the data, should be left to statisticians.
⊚ true
⊚ false



18) Analytic-minded accountants should report results of analysis in an accessible way to
eachvaried decision maker and their specific needs.
⊚ true
⊚ false




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