DATA AND ANALYTICS IN ACCOUNTING
ACTUAL EXAM PAPER 2026 QUESTIONS
SOLUTIONS GRADED A+
◉ What is Big Data?
Answer: Big Data refers to datasets that are too large and complex to
be analyzed using traditional methods.
◉ What are the 4 V's of Big Data?
Answer: Volume (size), Velocity (frequency), Variety (different
types), and Veracity (data quality).
◉ Why does data analytics matter to business?
Answer: 85% of CEOs value data analytics highly, and it can generate
up to $2 trillion in value per year.
◉ How does data analytics enhance auditing?
Answer: It improves audit quality, expands services, and adds value
to clients.
◉ What benefits does data analytics provide in management
accounting?
,Answer: It enhances cost analysis and enables better decision-
making, forecasting, budgeting, and sales.
◉ How does data analytics affect financial reporting?
Answer: It helps accountants make better estimates and allows
managers to understand the business environment better.
◉ What is the IMPACT cycle in data analytics?
Answer: The IMPACT cycle includes Identify the questions, Master
the data, Perform the test plan, Address and refine results,
Communicate insights, and Track outcomes.
◉ What is the first step of the IMPACT model?
Answer: Identify the questions that need to be addressed in the
business.
◉ What does 'Master the Data' entail in the IMPACT model?
Answer: It involves understanding what data are available and how
they relate to the problem.
◉ What types of models can be used in the 'Perform the Test Plan'
step?
Answer: Classification, Regression, Similarity matching, Clustering,
Co-occurrence grouping, and Profiling.
,◉ What is the purpose of the 'Address and Refine Results' step?
Answer: To identify issues with analyses and refine the model by
asking further questions and exploring data.
◉ What is important in the 'Communicate Insights' step?
Answer: Using clear language and visualizations like dashboards and
reports to communicate findings.
◉ What does the 'Track Outcomes' step involve?
Answer: Following up on the results of the analysis and observing
trends and changes over time.
◉ What skills do accountants need for data analytics?
Answer: They need to articulate business problems, communicate
with data scientists, draw conclusions, and present results.
◉ What are the key data analytics tools mentioned?
Answer: Microsoft tools (Excel, Power BI) and Tableau tools
(Tableau Prep Builder, Tableau Desktop).
◉ What is the role of data scrubbing in data analytics?
, Answer: It involves preparing data to ensure quality and
completeness before analysis.
◉ What is a primary key in a relational database?
Answer: A unique identifier for a record in a table.
◉ What is a foreign key?
Answer: An attribute in one table that points to a primary key in
another table.
◉ What are composite keys?
Answer: A combination of two foreign keys used for line items in a
database.
◉ What is the significance of descriptive attributes?
Answer: They include all other attributes that provide additional
information about records.
◉ How does data analytics change the audit process?
Answer: It allows auditors to consider 100% of transactions,
improving risk detection.
◉ What is the relationship between data analytics and tax planning?
ACTUAL EXAM PAPER 2026 QUESTIONS
SOLUTIONS GRADED A+
◉ What is Big Data?
Answer: Big Data refers to datasets that are too large and complex to
be analyzed using traditional methods.
◉ What are the 4 V's of Big Data?
Answer: Volume (size), Velocity (frequency), Variety (different
types), and Veracity (data quality).
◉ Why does data analytics matter to business?
Answer: 85% of CEOs value data analytics highly, and it can generate
up to $2 trillion in value per year.
◉ How does data analytics enhance auditing?
Answer: It improves audit quality, expands services, and adds value
to clients.
◉ What benefits does data analytics provide in management
accounting?
,Answer: It enhances cost analysis and enables better decision-
making, forecasting, budgeting, and sales.
◉ How does data analytics affect financial reporting?
Answer: It helps accountants make better estimates and allows
managers to understand the business environment better.
◉ What is the IMPACT cycle in data analytics?
Answer: The IMPACT cycle includes Identify the questions, Master
the data, Perform the test plan, Address and refine results,
Communicate insights, and Track outcomes.
◉ What is the first step of the IMPACT model?
Answer: Identify the questions that need to be addressed in the
business.
◉ What does 'Master the Data' entail in the IMPACT model?
Answer: It involves understanding what data are available and how
they relate to the problem.
◉ What types of models can be used in the 'Perform the Test Plan'
step?
Answer: Classification, Regression, Similarity matching, Clustering,
Co-occurrence grouping, and Profiling.
,◉ What is the purpose of the 'Address and Refine Results' step?
Answer: To identify issues with analyses and refine the model by
asking further questions and exploring data.
◉ What is important in the 'Communicate Insights' step?
Answer: Using clear language and visualizations like dashboards and
reports to communicate findings.
◉ What does the 'Track Outcomes' step involve?
Answer: Following up on the results of the analysis and observing
trends and changes over time.
◉ What skills do accountants need for data analytics?
Answer: They need to articulate business problems, communicate
with data scientists, draw conclusions, and present results.
◉ What are the key data analytics tools mentioned?
Answer: Microsoft tools (Excel, Power BI) and Tableau tools
(Tableau Prep Builder, Tableau Desktop).
◉ What is the role of data scrubbing in data analytics?
, Answer: It involves preparing data to ensure quality and
completeness before analysis.
◉ What is a primary key in a relational database?
Answer: A unique identifier for a record in a table.
◉ What is a foreign key?
Answer: An attribute in one table that points to a primary key in
another table.
◉ What are composite keys?
Answer: A combination of two foreign keys used for line items in a
database.
◉ What is the significance of descriptive attributes?
Answer: They include all other attributes that provide additional
information about records.
◉ How does data analytics change the audit process?
Answer: It allows auditors to consider 100% of transactions,
improving risk detection.
◉ What is the relationship between data analytics and tax planning?
