SOLUTION MANUAL
Data Analytics for Accounting, 3rd Edition
by Vernon Richardson, Chapters 1 - 9
1
,Chapter 1: Data Analytics for Accounting and Identifying the Questions Chapter 2: Mastering the Data
d d d d d d d d d d d d d d
Chapter 3: Performing the Test Plan and Analyzing the Results Chapter4: CommunicatingResultsand Visualizations
d d d d d d d d d d d d d d d
Chapter 5: The Modern Accounting Environment Chapter 6: Audit Data
d d d d d d d d d
Analytics
d
Chapter 7: ManagerialAnalytics
d d d
Chapter 8: Financial StatementAnalytics Chapter 9: Tax Analytics
d d d d d d d d
2
,Solutions Manual – Chapter 1
d d d d
Solutions to Multiple Choice Questions
d d d d
1. (LO 1-1) Big Data is often described by the four Vs, or
d d d d d d d d d d d
a. volume, velocity, veracity, and variability.
d d d d
b. volume, velocity, veracity, and variety.
d d d d
c. volume, volatility, veracity, and variability.
d d d d
d. variability, velocity, veracity, and variety. d d d d
Answer: b d
2. LO 1-4) Which data approach attempts to assign each unit in a population into a small set
d d d d d d d d d d d d d d d d
dofclasses (or groups) where the unit best fits?
d d d d d d d
a. Regression
b. Similaritymatching d
c. Co-occurrence grouping d
d. Classification
Answer: d d
3. (LO 1-4) Which data approach attempts to identify similar individuals based on data
d d d d d d d d d d d d
dknownabout them? d
a. Classification
b. Regression
c. Similaritymatching d
d. Datareduction d
Answer: c d
4. (LO 1-4) Which data approach attempts to predict connections between two data items?
d d d d d d d d d d d d
a. Profiling
b. Classification
c. Link prediction d
d. Regression
3
, Answer: c d
5. (LO 1-6) Which of these terms is defined as being a central repository of descriptions for all of the
d d d d d d d d d d d d d d d d d d
data attributes of the dataset?
d d d d d
a. Big Data
d
b. Data warehouse
d
c. Data dictionary
d
d. Data Analytics
d
Answer: c d
6. (LO 1-5) Which skills were not emphasized that analytic-minded accountants should have?
d d d d d d d d d d d
a. Developed an analytics mindset d d d
b. Data scrubbing and data preparation
d d d d
c. Classification of test approaches d d d
d. Statistical data analysis competency
d d d
Answer: c d
7. (LO 1-5) In which areas were skills not emphasized for analytic-minded accountants?
d d d d d d d d d d d
a. Data quality
d
b. Descriptive data analysis d d
c. Data visualization and data reporting
d d d d
d. Data and systems analysis and design
d d d d d
Answer: d d
8. (LO 1-4) The IMPACT cycle includes all except the following steps:
d d d d d d d d d d
a. perform test plan. d d
b. visualize the data. d d
c. master the data.
d d
d. trackoutcomes.
d
Answer: b d
9. (LO 1-4) The IMPACT cycle specifically includes all except the following steps:
d d d d d d d d d d d
a. datapreparation.
d
b. communicateinsights. d
c. address and refine results.
d d d
d. perform test plan. d d
4
Data Analytics for Accounting, 3rd Edition
by Vernon Richardson, Chapters 1 - 9
1
,Chapter 1: Data Analytics for Accounting and Identifying the Questions Chapter 2: Mastering the Data
d d d d d d d d d d d d d d
Chapter 3: Performing the Test Plan and Analyzing the Results Chapter4: CommunicatingResultsand Visualizations
d d d d d d d d d d d d d d d
Chapter 5: The Modern Accounting Environment Chapter 6: Audit Data
d d d d d d d d d
Analytics
d
Chapter 7: ManagerialAnalytics
d d d
Chapter 8: Financial StatementAnalytics Chapter 9: Tax Analytics
d d d d d d d d
2
,Solutions Manual – Chapter 1
d d d d
Solutions to Multiple Choice Questions
d d d d
1. (LO 1-1) Big Data is often described by the four Vs, or
d d d d d d d d d d d
a. volume, velocity, veracity, and variability.
d d d d
b. volume, velocity, veracity, and variety.
d d d d
c. volume, volatility, veracity, and variability.
d d d d
d. variability, velocity, veracity, and variety. d d d d
Answer: b d
2. LO 1-4) Which data approach attempts to assign each unit in a population into a small set
d d d d d d d d d d d d d d d d
dofclasses (or groups) where the unit best fits?
d d d d d d d
a. Regression
b. Similaritymatching d
c. Co-occurrence grouping d
d. Classification
Answer: d d
3. (LO 1-4) Which data approach attempts to identify similar individuals based on data
d d d d d d d d d d d d
dknownabout them? d
a. Classification
b. Regression
c. Similaritymatching d
d. Datareduction d
Answer: c d
4. (LO 1-4) Which data approach attempts to predict connections between two data items?
d d d d d d d d d d d d
a. Profiling
b. Classification
c. Link prediction d
d. Regression
3
, Answer: c d
5. (LO 1-6) Which of these terms is defined as being a central repository of descriptions for all of the
d d d d d d d d d d d d d d d d d d
data attributes of the dataset?
d d d d d
a. Big Data
d
b. Data warehouse
d
c. Data dictionary
d
d. Data Analytics
d
Answer: c d
6. (LO 1-5) Which skills were not emphasized that analytic-minded accountants should have?
d d d d d d d d d d d
a. Developed an analytics mindset d d d
b. Data scrubbing and data preparation
d d d d
c. Classification of test approaches d d d
d. Statistical data analysis competency
d d d
Answer: c d
7. (LO 1-5) In which areas were skills not emphasized for analytic-minded accountants?
d d d d d d d d d d d
a. Data quality
d
b. Descriptive data analysis d d
c. Data visualization and data reporting
d d d d
d. Data and systems analysis and design
d d d d d
Answer: d d
8. (LO 1-4) The IMPACT cycle includes all except the following steps:
d d d d d d d d d d
a. perform test plan. d d
b. visualize the data. d d
c. master the data.
d d
d. trackoutcomes.
d
Answer: b d
9. (LO 1-4) The IMPACT cycle specifically includes all except the following steps:
d d d d d d d d d d d
a. datapreparation.
d
b. communicateinsights. d
c. address and refine results.
d d d
d. perform test plan. d d
4
