TEST BANK FOR Data and Analytics in Accounting An Integrated Approach 1st Edition by Ann C. Dzuranin, Guido Geerts, Margarita Lenk

TEST BANK FOR Data and Analytics in Accounting An Integrated Approach 1st Edition by Ann C. Dzuranin, Guido Geerts, Margarita Lenk-1) One key feature of self-service business intelligence (SSBI) software is that A) it is easy to use. B) it costs less to implement. C) it connects to multiple data sources. D) it provides dashboarding capabilities. Answer: A Explanation: There are two key features of SSBI software: it provides extended data processing capabilities for preparing data, analyzing data, and reporting data analysis results; and it is easy to use. Diff: 1 LO: 1-1 Bloom: C Min.: 1 AACSB: Analytic AICPA: FC: Measurement, Analysis, and Interpretation 2) Alteryx is an example of SSBI software that can A) replace Excel since it can provide more complex functions. B) replace a database since it can store transactional data. C) replace the data warehouse. D) be used to clean data by removing null values or removing leading or trailing spaces. Answer: D Explanation: There are two key features of SSBI software: it provides extended data processing capabilities for preparing data, analyzing data, and reporting data analysis results; and it is easy to use. Diff: 1 LO: 1-1 Bloom: C Min.: 1 AACSB: Analytic AICPA: FC: Measurement, Analysis, and Interpretation 2 3) How has data analytics changed the audit profession? A) The cost of audit engagements has increased due to the growing data volume that needs to be validated. B) The cost of audit engagements has decreased since the data that is received from clients are more trustworthy. C) An auditor can now analyze the entire population of audit-relevant data for exceptions or outliers. D) There is a greater assurance that financial statements do not have material misstatement since the data is more timely and complete. Answer: C Explanation: Self-service business intelligence tools has empowered accountants to use data and analytics to provide value-added services to their clients and employers. Diff: 2 LO: 1-1 Bloom: AP Min.: 1 AACSB: Analytic AICPA: FC: Measurement, Analysis, and Interpretation 4) Data analytics is A) the process of analyzing raw data to answer questions or provide insights. B) the process of storing relevant raw data so that data can be analyzed. C) the process of cleaning data so that data can be more trustworthy. D) the process of using machine learning and predictive modeling. Answer: A Explanation: Data analytics is the process of analyzing raw data to answer questions or provide insights. Diff: 1 LO: 1-1 Bloom: C Min.: 1 AACSB: Analytic AICPA: FC: Measurement, Analysis, and Interpretation 5) Robotic process automation (RPA) software is being used to A) build artificial intelligence models to eliminate manual audit tasks. B) analyze auditing data and performing substantive tests. C) audit sample-based testing so that auditors can focus on analysis and provide valuable insights. D) automate manual tasks so that auditors can focus on more strategic tasks. Answer: D Explanation: RPA can be used to perform routine financial accounting functions such as recording journal entries, creating trial balances, doing preliminary account analyses, and creating financial statements to let accountants spend more time analyzing data for insights. Diff: 1 LO: 1-1 Bloom: C Min.: 1 AACSB: Analytic 3 AICPA: FC: Measurement, Analysis, and Interpretation 6) Robotic process automation (RPA)software can be used by financial accountants A) to perform routine financial accounting functions such as recording journal entries and creating trial balances. B) to perform non-routine financial accounting functions such as analyzing potential mergers and acquisitions. C) to perform routine financial accounting functions such as determining revenue recognition on complex construction projects. D) to make predictions within financial capital markets. Answer: A Explanation: RPA can be used to perform routine financial accounting functions such as recording journal entries, creating trial balances, doing preliminary account analyses, and creating financial statements to let accountants spend more time analyzing data for insights. Diff: 2 LO: 1-1 Bloom: AP Min.: 1 AACSB: Analytic AICPA: FC: Measurement, Analysis, and Interpretation