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

SOLUTIONMANUAL l




DataAnalyticsforAccounting,3rdEdition
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byVernonRichardson,Chapters1 -9
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1

,Chapter 1: Data Analytics for Accounting andIdentifying the Questions Chapter 2: Mastering the Data
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Chapter 3: Performing the Test Plan and Analyzing the Results Chapter 4:Communicating Resultsand
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Visualizations
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Chapter 5: The Modern Accounting Environment Chapter 6: Audit Data
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Analytics
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Chapter 7: ManagerialAnalytics
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Chapter 8: Financial StatementAnalytics Chapter 9: Tax Analytics
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2

,Solutions Manual – Chapter 1
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Solutions to Multiple Choice Questions
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1. (LO 1-1) Big Data is often described by the four Vs, or
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a. volume, velocity,veracity, and variability. l l l l



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



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



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




Answer: b l




2. LO 1-4) Which data approach attempts to assign each unit in a population into a small set
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l ofclasses (or groups) where the unit best fits?
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a. Regression
b. Similaritymatching l



c. Co-occurrencegrouping l



d. Classification

Answer: d l




3. (LO 1-4) Which data approach attempts to identify similar individuals based on data
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knownabout them?
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a. Classification
b. Regression
c. Similaritymatching l



d. Datareduction l




Answer: c l




4. (LO 1-4) Which data approach attempts to predict connections between two data items?
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a. Profiling
b. Classification
c. Link prediction ll



d. Regression




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, Answer: c l




5. (LO 1-6) Which of these terms is defined as being a central repository of descriptions for all of the
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data attributes of the dataset?
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a. Big Data
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b. Data warehouse
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c. Data dictionary
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d. DataAnalyticsl




Answer: c l




6. (LO 1-5) Which skills were not emphasized that analytic-minded accountants should have?
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a. Developed an analytics mindset l ll ll



b. Data scrubbing and data preparation
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c. Classification of test approaches ll l ll



d. Statistical data analysis competency l ll ll




Answer: c l




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



b. Descriptivedata analysis l ll



c. Data visualization and data reporting
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d. Data and systems analysis and design
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Answer: d l




8. (LO 1-4) The IMPACT cycle includes all except the following steps:
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a. performtest plan. l l



b. visualize the data. ll ll



c. master the data. l ll



d. trackoutcomes.
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Answer: b l




9. (LO 1-4) The IMPACT cycle specifically includes all except the following steps:
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a. datapreparation.
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b. communicateinsights. l



c. address and refine results. ll l ll



d. perform test plan. l ll




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