DATA ANALYTICS FOR ACCOUNTING EXAM
2026 EXAM Q&A STUDY GUIDE
◉ 2.5 Quintillion bytes of data are created every day,. Answer: and
that number continues to grow with no sign of slowing down.
◉ The data that now floods the Internet every second is equivalent
to. Answer: the data stored on the entire Internet 20 years ago.
◉ The abundance of data can be helpful in addressing company
questions, problem, and challenges to the extent that. Answer:
accountants can harness and analyze the available data.
◉ The increasing amount of data may cause. Answer: information
overload and hinder the work of the accountant.
◉ How to deal with automation:. Answer: While computers
increasingly collect the data, they do not have the accounting
expertise that accountants provide.
Data Analytics is one way for accountants to develop and exhibit this
needed expertise.
,Data is not the answer. It may help answer question, but that data is
a tool of the analyst.
◉ Bloom's Taxonomy. Answer: 1. Remember
2. Understand
3. Apply
4. Analyze
5. Evaluate
6. Create
◉ The basic academia accounting curriculum most directly
addresses to the three lowest levels of Bloom's taxonomy.. Answer:
Remember, Understand, and Apply.
◉ Data analytics moved us into the higher order thinking skills..
Answer: Accountants simply cannot analyze, evaluate, and create if
they do not already have the basic accounting knowledge and
understanding required by the lower level skills.
◉ The AMPS Model:. Answer: 1. Ask the Question
2. Master the Data
3. Perform the Analysis
4. Share the Story
,◉ Ask the Question. Answer: Your Data Won't Speak Unless You Ask
It The Right Data Analytics Questions"
-Diagnostic Analytics
-Predictive Analytics
-Prescriptive Analytics
◉ Diagnostic Analytics. Answer: Why did it happen? What are the
root causes of past results?
◉ Predictive Analytics. Answer: Will it happen in the future? What is
the probability something will happen? Is it forecastable?
◉ Prescriptive Analytics. Answer: What should we do, based on
what we expect will happen? How do we optimize our performance
based on potential constraints?
◉ Master the Data. Answer: Can the data answer/address the
question?
Does the data exhibit data integrity (accurate, valid and consistent)?
, Cost of Acquiring vs. Benefit of Using the Data
Type of Data: Categorical vs. Numerical
◉ Does the data exhibit data integrity (accurate, valid and
consistent)?. Answer: Does the data have errors?
Is data missing?
Is the data biased?
◉ Cost of Acquiring vs. Benefit of Using the Data. Answer: Who owns
the data?
Is the data hard to access?
◉ Type of Data: Categorical vs. Numerical. Answer: What type of
analysis does the data allow us to do?
◉ Perform the Analysis. Answer: A histogram or a scatterplot might
be used to help evaluate journal entries that are excessively big or
excessively small (or negative) with the testing of internal controls.
Regression analysis might be used to evaluate cost behavior by
segregating total costs into fixed and variable cost components.
2026 EXAM Q&A STUDY GUIDE
◉ 2.5 Quintillion bytes of data are created every day,. Answer: and
that number continues to grow with no sign of slowing down.
◉ The data that now floods the Internet every second is equivalent
to. Answer: the data stored on the entire Internet 20 years ago.
◉ The abundance of data can be helpful in addressing company
questions, problem, and challenges to the extent that. Answer:
accountants can harness and analyze the available data.
◉ The increasing amount of data may cause. Answer: information
overload and hinder the work of the accountant.
◉ How to deal with automation:. Answer: While computers
increasingly collect the data, they do not have the accounting
expertise that accountants provide.
Data Analytics is one way for accountants to develop and exhibit this
needed expertise.
,Data is not the answer. It may help answer question, but that data is
a tool of the analyst.
◉ Bloom's Taxonomy. Answer: 1. Remember
2. Understand
3. Apply
4. Analyze
5. Evaluate
6. Create
◉ The basic academia accounting curriculum most directly
addresses to the three lowest levels of Bloom's taxonomy.. Answer:
Remember, Understand, and Apply.
◉ Data analytics moved us into the higher order thinking skills..
Answer: Accountants simply cannot analyze, evaluate, and create if
they do not already have the basic accounting knowledge and
understanding required by the lower level skills.
◉ The AMPS Model:. Answer: 1. Ask the Question
2. Master the Data
3. Perform the Analysis
4. Share the Story
,◉ Ask the Question. Answer: Your Data Won't Speak Unless You Ask
It The Right Data Analytics Questions"
-Diagnostic Analytics
-Predictive Analytics
-Prescriptive Analytics
◉ Diagnostic Analytics. Answer: Why did it happen? What are the
root causes of past results?
◉ Predictive Analytics. Answer: Will it happen in the future? What is
the probability something will happen? Is it forecastable?
◉ Prescriptive Analytics. Answer: What should we do, based on
what we expect will happen? How do we optimize our performance
based on potential constraints?
◉ Master the Data. Answer: Can the data answer/address the
question?
Does the data exhibit data integrity (accurate, valid and consistent)?
, Cost of Acquiring vs. Benefit of Using the Data
Type of Data: Categorical vs. Numerical
◉ Does the data exhibit data integrity (accurate, valid and
consistent)?. Answer: Does the data have errors?
Is data missing?
Is the data biased?
◉ Cost of Acquiring vs. Benefit of Using the Data. Answer: Who owns
the data?
Is the data hard to access?
◉ Type of Data: Categorical vs. Numerical. Answer: What type of
analysis does the data allow us to do?
◉ Perform the Analysis. Answer: A histogram or a scatterplot might
be used to help evaluate journal entries that are excessively big or
excessively small (or negative) with the testing of internal controls.
Regression analysis might be used to evaluate cost behavior by
segregating total costs into fixed and variable cost components.
