Exam 1 Accounting Analytics
What are the six components of the IMPACT cycle? correct answers1) Identify the questions
2) Master the data
3) Perform test plan
4) Address and refine results
5) Communicate insights
6) Track outcomes
Definition of Data Analytics correct answersData Analytics is the process of evaluating data with the purpose of drawing conclusions to address business questions. Effective Data Analytics provides a way to
search through large structured and unstructured data to identify unknown patterns or relationships.
Definition of Big Data correct answersBig Data refers to datasets which are too large and complex to be analyzed traditionally.
What are the 5 V's of big data? correct answers1) Volume refers to size
2) Velocity refers to processing speed
3) Variety refers to different types
4) Veracity refers to the trustworthiness of the data
5) Value refers to the insights the data analytics can result in
Critical thinking involves 4 building blocks. What are they? correct answersUnbiased
Analytical
Diagnostic
Logical
How does data analytics affect auditing? (3) correct answers§Data analytics will enhance audit quality. §Data analytics enables enhanced audits, expanded services, and added value to clients.
§External auditors will stay engaged beyond the audit.
How does data analytics affect financial reporting? correct answers§Better estimates of collectability, write-downs, etc.
§Managers can better understand the business environment through social media
§Identify risks and opportunities through analysis of Internet searches
How does data analytics affect taxes? correct answers§Tax strategy and planning
§Understanding of tax consequences of international transactions, investment, mergers and acquisitions
§Better organization of tax tables and other tax data
6 Components of the IMPACT model? correct answers1.Identify the questions
2.Master the data
3.Perform the test plan
4.Address and refine results
5.Communicate insights
6.Track outcomes
What is step 1 of the IMPACT model? correct answersIdentify the Questions. Understand the business problems that need to be addressed. Ex. Are there any suspicious travel and entertainment expenses?
What are the six components of the IMPACT cycle? correct answers1) Identify the questions
2) Master the data
3) Perform test plan
4) Address and refine results
5) Communicate insights
6) Track outcomes
Definition of Data Analytics correct answersData Analytics is the process of evaluating data with the purpose of drawing conclusions to address business questions. Effective Data Analytics provides a way to
search through large structured and unstructured data to identify unknown patterns or relationships.
Definition of Big Data correct answersBig Data refers to datasets which are too large and complex to be analyzed traditionally.
What are the 5 V's of big data? correct answers1) Volume refers to size
2) Velocity refers to processing speed
3) Variety refers to different types
4) Veracity refers to the trustworthiness of the data
5) Value refers to the insights the data analytics can result in
Critical thinking involves 4 building blocks. What are they? correct answersUnbiased
Analytical
Diagnostic
Logical
How does data analytics affect auditing? (3) correct answers§Data analytics will enhance audit quality. §Data analytics enables enhanced audits, expanded services, and added value to clients.
§External auditors will stay engaged beyond the audit.
How does data analytics affect financial reporting? correct answers§Better estimates of collectability, write-downs, etc.
§Managers can better understand the business environment through social media
§Identify risks and opportunities through analysis of Internet searches
How does data analytics affect taxes? correct answers§Tax strategy and planning
§Understanding of tax consequences of international transactions, investment, mergers and acquisitions
§Better organization of tax tables and other tax data
6 Components of the IMPACT model? correct answers1.Identify the questions
2.Master the data
3.Perform the test plan
4.Address and refine results
5.Communicate insights
6.Track outcomes
What is step 1 of the IMPACT model? correct answersIdentify the Questions. Understand the business problems that need to be addressed. Ex. Are there any suspicious travel and entertainment expenses?
