TEST BANK FOR TEST BANK FOR
DATA ANALYTICS FOR ACCOUNTING, DATA ANALYTICS FOR ACCOUNTING,
3RD EDITION RICHARDSON CHAPTER 1- 3RD EDITION RICHARDSON CHAPTER 1-
9 UPDATED 2025 9 UPDATED 2025
Answers are at the End of Each Chapter 6) The predictive analytics is an important aspect of data analytics for auditors, but is not
applicable for tax accountants.
Chapter 01: ⊚ true
Student name: ⊚ false
1) Data analytics is the process of evaluating data with the purpose of drawing conclusions to
address business questions.
⊚ true 7) The I in IMPACT Cycle represents Identify the Question.
⊚ false ⊚ true
⊚ false
2) The process of data analytics aims to transform raw information into data to create value.
⊚ true 8) The M in IMPACT Cycle represents Master the Data.
⊚ false ⊚ true
⊚ false
3) Data analytics has the potential to transform the manner in which companies run their
businesses, however it is not practical in the near future. 9) The P in IMPACT Cycle represents Predict the Results.
⊚ true ⊚ true
⊚ false ⊚ false
4) Auditors can use social media to hear what customers are saying about a company and 10) The A in IMPACT Cycle represents Analyze the Data.
compare this to inventory obsolescence and other estimates. ⊚ true
⊚ true ⊚ false
⊚ false
11) The C in IMPACT Cycle represents Continuously Track.
5) Data analytics allows auditors to glean insights that are beneficial to the client, without ⊚ true
breeching independence. ⊚ false
⊚ true
⊚ false
12) The T in IMPACT Cycle represents Track Outcomes.
⊚ true
⊚ false
, TEST BANK FOR TEST BANK FOR
DATA ANALYTICS FOR ACCOUNTING, DATA ANALYTICS FOR ACCOUNTING,
3RD EDITION RICHARDSON CHAPTER 1- 3RD EDITION RICHARDSON CHAPTER 1-
9 UPDATED 2025 9 UPDATED 2025
13) The IMPACT cycle is iterative, as insights are gained, outcomes are tracked, and new 19) With a goal to give organizations the information they need to make sound and timely
questions are identified. business decisions, data analytics often involves all of the following except:
⊚ true A) technologies.
⊚ false B) statistics.
C) strategies.
D) databases.
14) Data analysis through data manipulation is performing basic analysis to understand the
quality of the underlying data and its ability to address the business question.
⊚ true 20) Patterns discovered from enable businesses to identify opportunities and risks
⊚ false and better plan for .
A) past archives; the future
B) current data; the future
15) To be proficient in data analysis, accountants need to become data scientists. C) current data; today
⊚ true D) past archives; today
⊚ false
21) Which of the following best describes the goal of descriptive data analysis:
16) By developing an analytics mindset, accountants will be able to recognize when and how A) recognize what is meant by data quality, be it completeness, reliability or validity
data analytics can address business questions. B) perform basic analysis to understand the quality of the underlying data and its ability
⊚ true to address the business question
⊚ false C) demonstrate ability to sort, rearrange, merge, and reconfigure data in a manner that
allows enhanced analysis
D) comprehend the process needed to clean and prepare the data before analysis
17) While it is important for accountants to clearly articulate the business problem, drawing
appropriate conclusions, based on the data, should be left to statisticians.
⊚ true 22) Which of the following Microsoft software tool specializes in data joining?
⊚ false A) Excel
B) Power Query
C) Power BI
18) Analytic-minded accountants should report results of analysis in an accessible way to each D) Power Automate
varied decision maker and their specific needs.
⊚ true
⊚ false 23) Which of the following Microsoft software tools specializes in creating dashboards?
A) Excel
B) Power Query
C) Power BI
D) Power Automate
, TEST BANK FOR TEST BANK FOR
DATA ANALYTICS FOR ACCOUNTING, DATA ANALYTICS FOR ACCOUNTING,
3RD EDITION RICHARDSON CHAPTER 1- 3RD EDITION RICHARDSON CHAPTER 1-
9 UPDATED 2025 9 UPDATED 2025
24) Which of the following Tableau software tools specializes in data transformation? 29) Which of the following best describes the goal of developing an analytics mindset:
A) Tableau Desktop A) recognize when and how data analytics can address business questions
B) Tableau Prep Builder B) perform basic analysis to understand the quality of the underlying data and its ability
C) Tableau Public to address the business question
D) Tableau Visualize C) recognize what is meant by data quality, be it completeness, reliability or validity
D) comprehend the process needed to clean and prepare the data before analysis
25) Which of the following Tableau software tools specializes in creating dashboards?
A) Tableau Desktop 30) Which of the following best describes the goal of data visualization and data reporting:
B) Tableau Prep Builder A) recognize when and how data analytics can address business questions
C) Tableau Public B) perform basic analysis to understand the quality of the underlying data and its ability
D) Tableau Visualize to address the business question
C) recognize what is meant by data quality, be it completeness, reliability or validity
D) report results of analysis in an accessible way to each varied decision maker and their
26) Which of the following best describes the goal of data quality: specific needs
A) recognize what is meant by data quality, be it completeness, reliability or validity
B) perform basic analysis to understand the quality of the underlying data and its ability
to address the business question 31) Which of the following best describes the goal of defining and addressing problems through
C) demonstrate ability to sort, rearrange, merge, and reconfigure data in a manner that statistical data analysis:
allows enhanced analysis A) recognize what is meant by data quality, be it completeness, reliability or validity
D) comprehend the process needed to clean and prepare the data before analysis B) perform basic analysis to understand the quality of the underlying data and its ability
to address the business question
C) demonstrate ability to sort, rearrange, merge and reconfigure data in a manner that
27) Which of the following best describes the goal of data manipulation: allows enhanced analysis
A) recognize what is meant by data quality, be it completeness, reliability or validity D) identify and implement an approach that will use statistical data analysis to draw
B) perform basic analysis to understand the quality of the underlying data and its ability conclusions and make recommendations on a timely basis
to address the business question
C) demonstrate ability to sort, rearrange, merge, and reconfigure data in a manner that
allows enhanced analysis 32) While accountants don't need to become data scientists, they must know how to do the
D) comprehend the process needed to clean and prepare the data before analysis following except:
A) Clearly articulate the business problem the company is facing
B) Communicate with the data scientists about specific data needs and understand the
28) Which of the following best describes the goal of data scrubbing and data preparation: underlying quality of the data
A) recognize what is meant by data quality, be it completeness, reliability or validity C) Build a data repository
B) perform basic analysis to understand the quality of the underlying data and its ability D) Comprehend the process needed to clean and prepare the data before analysis
to address the business question
C) demonstrate ability to sort, rearrange, merge and reconfigure data in a manner that
allows enhanced analysis
D) comprehend the process needed to clean and prepare the data before analysis
, TEST BANK FOR TEST BANK FOR
DATA ANALYTICS FOR ACCOUNTING, DATA ANALYTICS FOR ACCOUNTING,
3RD EDITION RICHARDSON CHAPTER 1- 3RD EDITION RICHARDSON CHAPTER 1-
9 UPDATED 2025 9 UPDATED 2025
33) Data analytics professionals estimate that they spend between of their time 37) Which approach to data analytics attempts to reduce the amount of information that needs to
cleaning data so it can be analyzed. be considered to focus on the most critical items?
A) Similarity matching.
A) 50 percent and 90 percent B) Profiling.
B) 10 percent and 20 percent C) Data reduction.
C) 20 percent and 50 percent D) Regression.
D) 70 percent and 95 percent
38) Which of the following best describes the classification approach to data analytics?
34) Which approach to data analytics attempts to estimate or predict, for each unit, the numerical A) An attempt to assign each unit (or individual) in a population into a few categories.
value of some variable using some type of statistical model? B) An attempt to identify similar individuals based on data known about them.
A) Similarity matching. C) An attempt to divide individuals into groups in a useful or meaningful way.
B) Classification. D) An attempt to discover associations between individuals based on transactions
C) Data reduction. involving them.
D) Regression.
39) Which of the following best describes the clustering approach to data analytics?
35) Which approach to data analytics attempts to characterize the typical behavior of an A) An attempt to assign each unit (or individual) in a population into a few categories.
individual, group or population by generating summary statistics about the data? B) An attempt to identify similar individuals based on data known about them.
A) Similarity matching. C) An attempt to divide individuals into groups in a useful or meaningful way.
B) Profiling. D) An attempt to discover associations between individuals based on transactions
C) Data reduction. involving them.
D) Regression.
40) Which of the following best describes the similarity matching approach to data analytics?
36) Since some transactions need more attention than others, the data reduction approach would A) An attempt to assign each unit (or individual) in a population into a few categories.
arguably be most important for the function. B) An attempt to identify similar individuals based on data known about them.
C) An attempt to divide individuals into groups in a useful or meaningful way.
A) audit D) An attempt to discover associations between individuals based on transactions
B) tax. involving them.
C) management accounting.
D) Regression.
41) Which of the following best describes the regression approach to data analytics?
A) An attempt to estimate or predict, for each unit, the numerical value of some variable
using some type of statistical model.
B) An attempt to predict a relationship between two data items.
C) An attempt to divide individuals into groups in a useful or meaningful way.
D) An attempt to discover associations between individuals based on transactions
involving them.
DATA ANALYTICS FOR ACCOUNTING, DATA ANALYTICS FOR ACCOUNTING,
3RD EDITION RICHARDSON CHAPTER 1- 3RD EDITION RICHARDSON CHAPTER 1-
9 UPDATED 2025 9 UPDATED 2025
Answers are at the End of Each Chapter 6) The predictive analytics is an important aspect of data analytics for auditors, but is not
applicable for tax accountants.
Chapter 01: ⊚ true
Student name: ⊚ false
1) Data analytics is the process of evaluating data with the purpose of drawing conclusions to
address business questions.
⊚ true 7) The I in IMPACT Cycle represents Identify the Question.
⊚ false ⊚ true
⊚ false
2) The process of data analytics aims to transform raw information into data to create value.
⊚ true 8) The M in IMPACT Cycle represents Master the Data.
⊚ false ⊚ true
⊚ false
3) Data analytics has the potential to transform the manner in which companies run their
businesses, however it is not practical in the near future. 9) The P in IMPACT Cycle represents Predict the Results.
⊚ true ⊚ true
⊚ false ⊚ false
4) Auditors can use social media to hear what customers are saying about a company and 10) The A in IMPACT Cycle represents Analyze the Data.
compare this to inventory obsolescence and other estimates. ⊚ true
⊚ true ⊚ false
⊚ false
11) The C in IMPACT Cycle represents Continuously Track.
5) Data analytics allows auditors to glean insights that are beneficial to the client, without ⊚ true
breeching independence. ⊚ false
⊚ true
⊚ false
12) The T in IMPACT Cycle represents Track Outcomes.
⊚ true
⊚ false
, TEST BANK FOR TEST BANK FOR
DATA ANALYTICS FOR ACCOUNTING, DATA ANALYTICS FOR ACCOUNTING,
3RD EDITION RICHARDSON CHAPTER 1- 3RD EDITION RICHARDSON CHAPTER 1-
9 UPDATED 2025 9 UPDATED 2025
13) The IMPACT cycle is iterative, as insights are gained, outcomes are tracked, and new 19) With a goal to give organizations the information they need to make sound and timely
questions are identified. business decisions, data analytics often involves all of the following except:
⊚ true A) technologies.
⊚ false B) statistics.
C) strategies.
D) databases.
14) Data analysis through data manipulation is performing basic analysis to understand the
quality of the underlying data and its ability to address the business question.
⊚ true 20) Patterns discovered from enable businesses to identify opportunities and risks
⊚ false and better plan for .
A) past archives; the future
B) current data; the future
15) To be proficient in data analysis, accountants need to become data scientists. C) current data; today
⊚ true D) past archives; today
⊚ false
21) Which of the following best describes the goal of descriptive data analysis:
16) By developing an analytics mindset, accountants will be able to recognize when and how A) recognize what is meant by data quality, be it completeness, reliability or validity
data analytics can address business questions. B) perform basic analysis to understand the quality of the underlying data and its ability
⊚ true to address the business question
⊚ false C) demonstrate ability to sort, rearrange, merge, and reconfigure data in a manner that
allows enhanced analysis
D) comprehend the process needed to clean and prepare the data before analysis
17) While it is important for accountants to clearly articulate the business problem, drawing
appropriate conclusions, based on the data, should be left to statisticians.
⊚ true 22) Which of the following Microsoft software tool specializes in data joining?
⊚ false A) Excel
B) Power Query
C) Power BI
18) Analytic-minded accountants should report results of analysis in an accessible way to each D) Power Automate
varied decision maker and their specific needs.
⊚ true
⊚ false 23) Which of the following Microsoft software tools specializes in creating dashboards?
A) Excel
B) Power Query
C) Power BI
D) Power Automate
, TEST BANK FOR TEST BANK FOR
DATA ANALYTICS FOR ACCOUNTING, DATA ANALYTICS FOR ACCOUNTING,
3RD EDITION RICHARDSON CHAPTER 1- 3RD EDITION RICHARDSON CHAPTER 1-
9 UPDATED 2025 9 UPDATED 2025
24) Which of the following Tableau software tools specializes in data transformation? 29) Which of the following best describes the goal of developing an analytics mindset:
A) Tableau Desktop A) recognize when and how data analytics can address business questions
B) Tableau Prep Builder B) perform basic analysis to understand the quality of the underlying data and its ability
C) Tableau Public to address the business question
D) Tableau Visualize C) recognize what is meant by data quality, be it completeness, reliability or validity
D) comprehend the process needed to clean and prepare the data before analysis
25) Which of the following Tableau software tools specializes in creating dashboards?
A) Tableau Desktop 30) Which of the following best describes the goal of data visualization and data reporting:
B) Tableau Prep Builder A) recognize when and how data analytics can address business questions
C) Tableau Public B) perform basic analysis to understand the quality of the underlying data and its ability
D) Tableau Visualize to address the business question
C) recognize what is meant by data quality, be it completeness, reliability or validity
D) report results of analysis in an accessible way to each varied decision maker and their
26) Which of the following best describes the goal of data quality: specific needs
A) recognize what is meant by data quality, be it completeness, reliability or validity
B) perform basic analysis to understand the quality of the underlying data and its ability
to address the business question 31) Which of the following best describes the goal of defining and addressing problems through
C) demonstrate ability to sort, rearrange, merge, and reconfigure data in a manner that statistical data analysis:
allows enhanced analysis A) recognize what is meant by data quality, be it completeness, reliability or validity
D) comprehend the process needed to clean and prepare the data before analysis B) perform basic analysis to understand the quality of the underlying data and its ability
to address the business question
C) demonstrate ability to sort, rearrange, merge and reconfigure data in a manner that
27) Which of the following best describes the goal of data manipulation: allows enhanced analysis
A) recognize what is meant by data quality, be it completeness, reliability or validity D) identify and implement an approach that will use statistical data analysis to draw
B) perform basic analysis to understand the quality of the underlying data and its ability conclusions and make recommendations on a timely basis
to address the business question
C) demonstrate ability to sort, rearrange, merge, and reconfigure data in a manner that
allows enhanced analysis 32) While accountants don't need to become data scientists, they must know how to do the
D) comprehend the process needed to clean and prepare the data before analysis following except:
A) Clearly articulate the business problem the company is facing
B) Communicate with the data scientists about specific data needs and understand the
28) Which of the following best describes the goal of data scrubbing and data preparation: underlying quality of the data
A) recognize what is meant by data quality, be it completeness, reliability or validity C) Build a data repository
B) perform basic analysis to understand the quality of the underlying data and its ability D) Comprehend the process needed to clean and prepare the data before analysis
to address the business question
C) demonstrate ability to sort, rearrange, merge and reconfigure data in a manner that
allows enhanced analysis
D) comprehend the process needed to clean and prepare the data before analysis
, TEST BANK FOR TEST BANK FOR
DATA ANALYTICS FOR ACCOUNTING, DATA ANALYTICS FOR ACCOUNTING,
3RD EDITION RICHARDSON CHAPTER 1- 3RD EDITION RICHARDSON CHAPTER 1-
9 UPDATED 2025 9 UPDATED 2025
33) Data analytics professionals estimate that they spend between of their time 37) Which approach to data analytics attempts to reduce the amount of information that needs to
cleaning data so it can be analyzed. be considered to focus on the most critical items?
A) Similarity matching.
A) 50 percent and 90 percent B) Profiling.
B) 10 percent and 20 percent C) Data reduction.
C) 20 percent and 50 percent D) Regression.
D) 70 percent and 95 percent
38) Which of the following best describes the classification approach to data analytics?
34) Which approach to data analytics attempts to estimate or predict, for each unit, the numerical A) An attempt to assign each unit (or individual) in a population into a few categories.
value of some variable using some type of statistical model? B) An attempt to identify similar individuals based on data known about them.
A) Similarity matching. C) An attempt to divide individuals into groups in a useful or meaningful way.
B) Classification. D) An attempt to discover associations between individuals based on transactions
C) Data reduction. involving them.
D) Regression.
39) Which of the following best describes the clustering approach to data analytics?
35) Which approach to data analytics attempts to characterize the typical behavior of an A) An attempt to assign each unit (or individual) in a population into a few categories.
individual, group or population by generating summary statistics about the data? B) An attempt to identify similar individuals based on data known about them.
A) Similarity matching. C) An attempt to divide individuals into groups in a useful or meaningful way.
B) Profiling. D) An attempt to discover associations between individuals based on transactions
C) Data reduction. involving them.
D) Regression.
40) Which of the following best describes the similarity matching approach to data analytics?
36) Since some transactions need more attention than others, the data reduction approach would A) An attempt to assign each unit (or individual) in a population into a few categories.
arguably be most important for the function. B) An attempt to identify similar individuals based on data known about them.
C) An attempt to divide individuals into groups in a useful or meaningful way.
A) audit D) An attempt to discover associations between individuals based on transactions
B) tax. involving them.
C) management accounting.
D) Regression.
41) Which of the following best describes the regression approach to data analytics?
A) An attempt to estimate or predict, for each unit, the numerical value of some variable
using some type of statistical model.
B) An attempt to predict a relationship between two data items.
C) An attempt to divide individuals into groups in a useful or meaningful way.
D) An attempt to discover associations between individuals based on transactions
involving them.
