Accounting Analytics Exam 1 (Ch. 1
& 2)
IMPACT cycle (data analytics process) - ✔✔ correct answer 1. identify the Qs*
2. Master the data
3. perform test plan
4. address and refine results
5. communicate insights
6. track outcomes
data analytics - ✔✔ correct answer the process of evaluating data with the purpose of drawing
conclusions to address business questions. effective data analytics provides a way to search through
large structured & unstructured data to identify unknown patterns or relationships
big data - ✔✔ correct answer datasets which are too large and complex to be analyzed traditionally
volume (5 V's) - ✔✔ correct answer refers to size
-excel is great for using data, until data becomes too large to process efficiently, then you should use
a different type of software
the 5 V's of data analytics and big data - ✔✔ correct answer 1. volume
2. velocity
3. variety
4. veracity
5. value
velocity (5 V's) - ✔✔ correct answer refers to processing speed
variety (5 V's) - ✔✔ correct answer refers to different types
-90% of generated data is unstructured (tweets, photos, etc.); structured data can be financial
statements, general ledgers, etc. (you know where to find info)
veracity (5 V's) - ✔✔ correct answer refers to the trustworthiness of the data
, Accounting Analytics Exam 1 (Ch. 1
& 2)
value (5 V's) - ✔✔ correct answer refers to the insights the data analytics can result in
-big data= the ability to achieve greater value through insights from superior analytics
critical thinking - ✔✔ correct answer 1. unbiased, 2. analytical, 3. diagnostic, 4. logical
-that mode of thinking in which the thinker improves the quality of his or her thinking by skillfully
analyzing, assessing and reconstructing it
-self-directed, self-disciplined, self-monitored, and self-corrective thinking
-presupposes assent to rigorous standards of excellence and mindful command of their use
-entails effective communication and problem-solving abilities, as well as commitment to overcome
our native egocentrism and sociocentrism
how does data analytics affect auditing? - ✔✔ correct answer -enhance audit quality
-enhanced audits, expanded services, and added value to clients
-external auditors will stay engaged beyond the audit
-decreases number of variables involved
how does data analytics affect financial reporting? - ✔✔ correct answer -better estimates of
collectability, write-downs, etc.
-managers can better understand the business environment through social media
-identify risks and opportunities through analysis of internet searches
how does data analytics affect taxes? - ✔✔ correct answer -tax strategy and planning
-understanding of tax consequences of international transactions, investment, mergers and
acquisitions
-better organization of tax tables and other tax data
IMPACT cycle step 1: identify the Qs - ✔✔ correct answer -understand the business problems that
need to be addressed
-are employees circumventing internal controls over payments?, are there any suspicious travel and
entertainment expenses?...etc.
& 2)
IMPACT cycle (data analytics process) - ✔✔ correct answer 1. identify the Qs*
2. Master the data
3. perform test plan
4. address and refine results
5. communicate insights
6. track outcomes
data analytics - ✔✔ correct answer the process of evaluating data with the purpose of drawing
conclusions to address business questions. effective data analytics provides a way to search through
large structured & unstructured data to identify unknown patterns or relationships
big data - ✔✔ correct answer datasets which are too large and complex to be analyzed traditionally
volume (5 V's) - ✔✔ correct answer refers to size
-excel is great for using data, until data becomes too large to process efficiently, then you should use
a different type of software
the 5 V's of data analytics and big data - ✔✔ correct answer 1. volume
2. velocity
3. variety
4. veracity
5. value
velocity (5 V's) - ✔✔ correct answer refers to processing speed
variety (5 V's) - ✔✔ correct answer refers to different types
-90% of generated data is unstructured (tweets, photos, etc.); structured data can be financial
statements, general ledgers, etc. (you know where to find info)
veracity (5 V's) - ✔✔ correct answer refers to the trustworthiness of the data
, Accounting Analytics Exam 1 (Ch. 1
& 2)
value (5 V's) - ✔✔ correct answer refers to the insights the data analytics can result in
-big data= the ability to achieve greater value through insights from superior analytics
critical thinking - ✔✔ correct answer 1. unbiased, 2. analytical, 3. diagnostic, 4. logical
-that mode of thinking in which the thinker improves the quality of his or her thinking by skillfully
analyzing, assessing and reconstructing it
-self-directed, self-disciplined, self-monitored, and self-corrective thinking
-presupposes assent to rigorous standards of excellence and mindful command of their use
-entails effective communication and problem-solving abilities, as well as commitment to overcome
our native egocentrism and sociocentrism
how does data analytics affect auditing? - ✔✔ correct answer -enhance audit quality
-enhanced audits, expanded services, and added value to clients
-external auditors will stay engaged beyond the audit
-decreases number of variables involved
how does data analytics affect financial reporting? - ✔✔ correct answer -better estimates of
collectability, write-downs, etc.
-managers can better understand the business environment through social media
-identify risks and opportunities through analysis of internet searches
how does data analytics affect taxes? - ✔✔ correct answer -tax strategy and planning
-understanding of tax consequences of international transactions, investment, mergers and
acquisitions
-better organization of tax tables and other tax data
IMPACT cycle step 1: identify the Qs - ✔✔ correct answer -understand the business problems that
need to be addressed
-are employees circumventing internal controls over payments?, are there any suspicious travel and
entertainment expenses?...etc.
