TEST BANK For Data Analytics for Accounting, 3rd Edition by Vernon Richardson, Verified Chapters 1 - 9,latest Version

TEST BANK
Data Analytics for Accounting, 3rd Edition by Vernon
Richardson.

,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`to`
address`business`questions.
⊚` true
⊚` false



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



3) Data`analytics`has`the`potential`to`transform`the`manner`in`which`companies`run`their`
businesses,`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`and`
compare`this`to`inventory`obsolescence`and`other`estimates.
⊚` true
⊚` false



5) Data`analytics`allows`auditors`to`glean`insights`that`are`beneficial`to`the`client,`without`
breeching`independence.
⊚` true
⊚` false

,6) The`predictive`analytics`is`an`important`aspect`of`data`analytics`for`auditors,`but`is`not`
applicable`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`new`
questions`are`identified.
⊚` true
⊚` false



14) Data`analysis`through`data`manipulation`is`performing`basic`analysis`to`understand`the`
quality`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`how`
data`analytics`can`address`business`questions.
⊚` true
⊚` false



17) While`it`is`important`for`accountants`to`clearly`articulate`the`business`problem,`drawing`
appropriate`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`each`varied`de
cision`maker`and`their`specific`needs.
⊚` true
⊚` false