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
nn nn nn nn nn nn nn nn nn nn nn




Chapter 01 nn




TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
nn nn nn nn nn nn nn nn nn nn nn nn nn nn nn




1) Data analytics is the process of evaluating data with the purpose of drawing conclusions to
nn nn nn nn nn nn nn nn nn nn nn nn nn nn


address business questions.
nn nn nn




⊚ true

⊚ false



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




⊚ true

⊚ false



3) Data analytics has the potential to transform the manner in which companies run their
nn nn nn nn nn nn ff nn nn nn nn nn nn


businesses, however it is not practical in the near future.
nn nn nn nn nn nn nn nn nn nn




⊚ true

⊚ false



4) Auditors can use social media to hear what customers are saying about a company and compare
nn nn nn nn nn nn nn nn nn nn nn nn nn nn nn


this to inventory obsolescence and other estimates.
nn nn nn nn nn nn nn




⊚ true

⊚ false



5) Data analytics allows auditors to glean insights that are beneficial to the client, without
nn nn nn nn nn nn nn nn nn nn nn nn nn


breeching independence.
nn nn




⊚ true

⊚ false




1 |P a g
nn nn nn nn


e

,6) The predictive analytics is an important aspect of data analytics for auditors, but is not
nn nn nn nn nn nn nn nn nn nn nn nn nn nn


applicable for tax accountants.
nn nn nn nn




⊚ true

⊚ false



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




⊚ true

⊚ false



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




⊚ true

⊚ false



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




⊚ true

⊚ false



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




⊚ true

⊚ false



11) The C in IMPACT Cycle represents Continuously Track.
nn nn nn nn nn nn nn




⊚ true

⊚ false



12) The T in IMPACT Cycle represents Track Outcomes.
nn nn nn nn nn nn nn




⊚ true

2 |P a g
nn nn nn nn


e

,⊚ false



13) The IMPACT cycle is iterative, as insights are gained, outcomes are tracked, and new questions
nn nn nn nn nn nn nn nn nn nn nn nn nn nn


are identified.
nn nn




⊚ true

⊚ false



14) Data analysis through data manipulation is performing basic analysis to understand the quality of
nn nn nn nn nn nn nn nn nn nn nn nn nn


the underlying data and its ability to address the business question.
nn nn nn nn nn nn nn nn nn nn nn




⊚ true

⊚ false



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




⊚ true

⊚ false



16) By developing an analytics mindset, accountants will be able to recognize when and how
nn nn nn nn nn nn nn nn nn nn nn nn nn


data analytics can address business questions.
nn nn nn nn nn nn




⊚ true

⊚ false



17) While it is important for accountants to clearly articulate the business problem, drawing
nn nn nn nn nn nn nn nn nn nn nn nn


appropriate conclusions, based on the data, should be left to statisticians.
nn nn nn nn nn nn nn nn nn nn nn




⊚ true

⊚ false




3 |P a g
nn nn nn nn


e

, 18) Analytic-minded accountants should report results of analysis in an accessible way to each
nn nn nn nn nn nn nn nn nn nn nn nn


varied decision maker and their specific needs.
nn nn nn nn nn nn nn




⊚ true

⊚ false



MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers
nn nn nn nn nn nn nn nn nn nn nn nn nn


the question.
nn nn




19) With a goal to give organizations the information they need to make sound and timely
nn nn nn nn nn nn nn nn nn nn nn nn nn nn


business decisions, data analytics often involves all of the following except:
nn nn nn nn nn nn nn nn nn nn nn




A) technologies.

B) statistics.

C) strategies.

D) databases.



20) Patterns discovered from
nn nn blank enable businesses to identify opportunities and risks
nn nn nn nn nn nn nn


and better plan for
nn nn nn nn blank.

A) past archives; the future
nn nn nn




B) current data; the future nn nn nn




C) current data; today nn nn




D) past archives; today
nn nn




21) Which of the following best describes the goal of descriptive data analysis:
nn nn nn nn nn nn nn nn nn nn nn




A) recognize what is meant by data quality, be it completeness, reliability or validity
nn nn nn nn nn nn nn nn nn nn nn nn




B) perform basic analysis to understand the quality of the underlying data and its ability to
nn nn nn nn nn nn nn nn nn nn nn nn nn nn


address the business question
nn nn nn nn




C) demonstrate ability to sort, rearrange, merge, and reconfigure data in a manner that
nn nn nn nn nn nn nn nn nn nn nn nn


allows enhanced analysis
nn nn nn




D) comprehend the process needed to clean and prepare the data before analysis
nn nn nn nn nn nn nn nn nn nn nn




4 |P a g
nn nn nn nn


e