TEST BANK For Data Analytics for Accounting, 3rd Edition by Vernon Richardson, Verified Chapters 1 - 9, Complete latest updated Version.

Test Bank - Data Analytics for Accounting, 3rd Edition By Vernon Richardson
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Chapter 01 oo




TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
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1) Data analytics is the process of evaluating data with the purpose of drawing conclusions to
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address business questions.
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⊚ true

⊚ false



2) The process of data analytics aims to transform raw information into data to create value.
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⊚ true

⊚ false



3) Data analytics has the potential to transform the manner in which companies run their
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businesses, however it is not practical in the near future.
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⊚ true

⊚ false



4) Auditors can use social media to hear what customers are saying about a company and compare
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this to inventory obsolescence and other estimates.
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⊚ true

⊚ false



5) Data analytics allows auditors to glean insights that are beneficial to the client, without
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breeching independence.
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⊚ true

⊚ false




1 |P a g
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e

,6) The predictive analytics is an important aspect of data analytics for auditors, but is not
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applicable for tax accountants.
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⊚ true

⊚ false



7) The I in IMPACT Cycle represents Identify the Question.
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⊚ true

⊚ false



8) The M in IMPACT Cycle represents Master the Data.
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⊚ true

⊚ false



9) The P in IMPACT Cycle represents Predict the Results.
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⊚ true

⊚ false



10) The A in IMPACT Cycle represents Analyze the Data.
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⊚ true

⊚ false



11) The C in IMPACT Cycle represents Continuously Track.
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⊚ true

⊚ false



12) The T in IMPACT Cycle represents Track Outcomes.
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⊚ true

2 |P a g
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e

,⊚ false



13) The IMPACT cycle is iterative, as insights are gained, outcomes are tracked, and new questions
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are identified.
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⊚ true

⊚ false



14) Data analysis through data manipulation is performing basic analysis to understand the quality of
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the underlying data and its ability to address the business question.
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⊚ true

⊚ false



15) To be proficient in data analysis, accountants need to become data scientists.
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⊚ true

⊚ false



16) By developing an analytics mindset, accountants will be able to recognize when and how
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data analytics can address business questions.
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⊚ true

⊚ false



17) While it is important for accountants to clearly articulate the business problem, drawing
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appropriate conclusions, based on the data, should be left to statisticians.
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⊚ true

⊚ false




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, 18) Analytic-minded accountants should report results of analysis in an accessible way to each
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varied decision maker and their specific needs.
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⊚ true

⊚ false



MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers
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the question.
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19) With a goal to give organizations the information they need to make sound and timely
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business decisions, data analytics often involves all of the following except:
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A) technologies.

B) statistics.

C) strategies.

D) databases.



20) Patterns discovered from
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and better plan for
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A) past archives; the future
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B) current data; the future oo oo oo




C) current data; today oo oo




D) past archives; today
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21) Which of the following best describes the goal of descriptive data analysis:
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A) recognize what is meant by data quality, be it completeness, reliability or validity
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B) perform basic analysis to understand the quality of the underlying data and its ability to
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address the business question
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C) demonstrate ability to sort, rearrange, merge, and reconfigure data in a manner that
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allows enhanced analysis
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D) comprehend the process needed to clean and prepare the data before analysis
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e