Test bank for data analytics for accounting 3rd edition by Vernon Richardson.

TEST BANK
Data Analytics for Accounting, 3rd Edition
by Vernon Richardson, Chapters 1 – 9

,Chapter 1: Data Analytics for Accounting and Identifying the Questions
Chapter 2: Mastering the Data

Chapter 3: Performing the Test Plan and Analyzing the Results Chapter 4:
Communicating Results and Visualizations
Chapter 5: The Modern Accounting Environment Chapter 6: Audit
Data Analytics

Chapter 7: Managerial Analytics

Chapter 8: Financial Statement Analytics Chapter 9: Tax
Analytics

,Answers are at the End of Each Chapter

Chapter 01:
Student name:
1) Data analytics is the process of evaluating data with the purpose of drawing
conclusions toaddress business questions.
⊚ true

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

⊚ false

3) Data analytics has the potential to transform the manner in which
companies run theirbusinesses, however it is not practical in the near
future.
⊚ true

⊚ false

4) Auditors can use social media to hear what customers are saying about a
company andcompare this to inventory obsolescence and other
estimates.
⊚ true

⊚ false

5) Data analytics allows auditors to glean insights that are beneficial to
the client, withoutbreeching independence.
⊚ true

⊚ false

,6) The predictive analytics is an important aspect of data analytics for
auditors, but is notapplicable for tax accountants.
⊚ true

⊚ false
7) The I in IMPACT Cycle represents Identify the Question.
⊚ true

⊚ false
8) The M in IMPACT Cycle represents Master the Data.
⊚ true

⊚ false
9) The P in IMPACT Cycle represents Predict the Results.
⊚ true

⊚ false
10) The A in IMPACT Cycle represents Analyze the Data.
⊚ true

⊚ false
11) The C in IMPACT Cycle represents Continuously Track.
⊚ true

⊚ false
12) The T in IMPACT Cycle represents Track Outcomes.
⊚ true

⊚ false

, 13) The IMPACT cycle is iterative, as insights are gained, outcomes are
tracked, and newquestions are identified.
⊚ true

⊚ false

14) Data analysis through data manipulation is performing basic analysis to
understand thequality of the underlying data and its ability to address
the business question.
⊚ true

⊚ false
15) To be proficient in data analysis, accountants need to become data scientists.
⊚ true

⊚ false

16) By developing an analytics mindset, accountants will be able to recognize
when and howdata analytics can address business questions.
⊚ true

⊚ false

17) While it is important for accountants to clearly articulate the business
problem, drawingappropriate conclusions, based on the data, should
be left to statisticians.
⊚ true

⊚ false

18) Analytic-minded accountants should report results of analysis in an
accessible way to eachvaried decision maker and their specific needs.
⊚ true

⊚ false