SOLUTIONMANUAL n
DataAnalyticsforAccounting,3rdEdition
n n n n n
byVernon Richardson,Chapters1 -9
n n n n n n
1
,Chapter 1: Data Analyticsfor Accounting andIdentifying theQuestions Chapter 2: Mastering the Data
n n n n n n n n n n n n n n
Chapter 3: Performing the Test Plan and Analyzing the Results Chapter4:CommunicatingResultsandVisualizations
n n n n n n n n n n n n n n n
Chapter 5: The Modern AccountingEnvironment Chapter 6: Audit DataAnalytics
n n n n n n n n n n
Chapter7: ManagerialAnalytics
n n n
Chapter 8: FinancialStatementAnalytics Chapter 9: Tax Analytics
n n n n n n n n
2
,Solutions Manual – Chapter 1
n n n n
Solutions to Multiple Choice Questions
n n n n
1. (LO 1-1) Big Data is often described by the four Vs, or
n n n n n n n n n n n
a. volume, velocity,veracity, and variability.
n n n n
b. volume, velocity, veracity, and variety.
n n n n
c. volume, volatility, veracity, and variability.
n n n n
d. variability, velocity, veracity, and variety. n n n n
Answer: b n
2. LO 1-4) Which data approach attempts to assign each unit in a population into a small set
n n n n n n n n n n n n n n n n
nofclasses (or groups) where the unit best fits?
n n n n n n n
a. Regression
b. Similaritymatching n
c. Co-occurrencegrouping n
d. Classification
Answer: d n
3. (LO 1-4) Which data approach attempts to identify similar individuals based on data
n n n n n n n n n n n n
nknownabout them? n
a. Classification
b. Regression
c. Similaritymatching n
d. Datareduction n
Answer: c n
4. (LO 1-4) Which data approach attempts to predict connections between two data items?
n n n n n n n n n n n n
a. Profiling
b. Classification
c. Link prediction n
d. Regression
3
, Answer: c n
5. (LO 1-6) Which of these terms is defined as being a central repository of descriptions for all of the
n n n n n n n n n n n n n n n n n n
data attributes of the dataset?
n n n n n
a. Big Data
n
b. Datawarehouse
n
c. Data dictionary
n
d. DataAnalytics
n
Answer: c n
6. (LO 1-5) Which skills were not emphasized that analytic-minded accountants should have?
n n n n n n n n n n n
a. Developed an analytics mindset n n n
b. Data scrubbing and data preparation
n n n n
c. Classification of test approaches n n n
d. Statistical data analysis competency n n n
Answer: c n
7. (LO 1-5) In which areas were skills not emphasized for analytic-minded accountants?
n n n n n n n n n n n
a. Data qualityn
b. Descriptivedata analysis n n
c. Data visualization and data reporting
n n n n
d. Data and systems analysis anddesign
n n n n n
Answer: d n
8. (LO 1-4) The IMPACT cycle includes all except the following steps:
n n n n n n n n n n
a. performtest plan. n n
b. visualize the data. n n
c. master the data.n n
d. trackoutcomes.
n
Answer: b n
9. (LO 1-4) The IMPACT cycle specifically includes all except the following steps:
n n n n n n n n n n n
a. datapreparation.
n
b. communicateinsights. n
c. address and refine results.
n n n
d. perform test plan. n n
4
DataAnalyticsforAccounting,3rdEdition
n n n n n
byVernon Richardson,Chapters1 -9
n n n n n n
1
,Chapter 1: Data Analyticsfor Accounting andIdentifying theQuestions Chapter 2: Mastering the Data
n n n n n n n n n n n n n n
Chapter 3: Performing the Test Plan and Analyzing the Results Chapter4:CommunicatingResultsandVisualizations
n n n n n n n n n n n n n n n
Chapter 5: The Modern AccountingEnvironment Chapter 6: Audit DataAnalytics
n n n n n n n n n n
Chapter7: ManagerialAnalytics
n n n
Chapter 8: FinancialStatementAnalytics Chapter 9: Tax Analytics
n n n n n n n n
2
,Solutions Manual – Chapter 1
n n n n
Solutions to Multiple Choice Questions
n n n n
1. (LO 1-1) Big Data is often described by the four Vs, or
n n n n n n n n n n n
a. volume, velocity,veracity, and variability.
n n n n
b. volume, velocity, veracity, and variety.
n n n n
c. volume, volatility, veracity, and variability.
n n n n
d. variability, velocity, veracity, and variety. n n n n
Answer: b n
2. LO 1-4) Which data approach attempts to assign each unit in a population into a small set
n n n n n n n n n n n n n n n n
nofclasses (or groups) where the unit best fits?
n n n n n n n
a. Regression
b. Similaritymatching n
c. Co-occurrencegrouping n
d. Classification
Answer: d n
3. (LO 1-4) Which data approach attempts to identify similar individuals based on data
n n n n n n n n n n n n
nknownabout them? n
a. Classification
b. Regression
c. Similaritymatching n
d. Datareduction n
Answer: c n
4. (LO 1-4) Which data approach attempts to predict connections between two data items?
n n n n n n n n n n n n
a. Profiling
b. Classification
c. Link prediction n
d. Regression
3
, Answer: c n
5. (LO 1-6) Which of these terms is defined as being a central repository of descriptions for all of the
n n n n n n n n n n n n n n n n n n
data attributes of the dataset?
n n n n n
a. Big Data
n
b. Datawarehouse
n
c. Data dictionary
n
d. DataAnalytics
n
Answer: c n
6. (LO 1-5) Which skills were not emphasized that analytic-minded accountants should have?
n n n n n n n n n n n
a. Developed an analytics mindset n n n
b. Data scrubbing and data preparation
n n n n
c. Classification of test approaches n n n
d. Statistical data analysis competency n n n
Answer: c n
7. (LO 1-5) In which areas were skills not emphasized for analytic-minded accountants?
n n n n n n n n n n n
a. Data qualityn
b. Descriptivedata analysis n n
c. Data visualization and data reporting
n n n n
d. Data and systems analysis anddesign
n n n n n
Answer: d n
8. (LO 1-4) The IMPACT cycle includes all except the following steps:
n n n n n n n n n n
a. performtest plan. n n
b. visualize the data. n n
c. master the data.n n
d. trackoutcomes.
n
Answer: b n
9. (LO 1-4) The IMPACT cycle specifically includes all except the following steps:
n n n n n n n n n n n
a. datapreparation.
n
b. communicateinsights. n
c. address and refine results.
n n n
d. perform test plan. n n
4
