SOLUTION
MANUAL
Data Analytics for Accounting,
3rd Edition
by Vernon Richardson,
Chapters 1 - 9
1
,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
2
,Solutions Manual – Chapter 1
Solutions to Multiple Choice
Questions
1.(LO 1-1) Big Data is often
described by the four Vs, or
a. volume, velocity, veracity,
and variability.
b. volume, velocity, veracity,
and variety.
c. volume, volatility, veracity,
and variability.
d. variability, velocity,
veracity, and variety.
Answer: b
2.LO 1-4) Which data approach attempts to assign each unit in a population
into a small set ofclasses (or groups) where the unit best fits?
a. Regression
b. Similarity matching
c. Co-occurrence grouping
d. Classification
Answer: d
3.(LO 1-4) Which data approach attempts to identify similar individuals
based on data knownabout them?
a. Classification
b. Regression
c. Similarity matching
d. Data reduction
Answer: c
4.(LO 1-4) Which data approach attempts to predict connections between
two data items?
a. Profiling
b. Classification
c. Link prediction
d. Regression
3
, Answer: c
5.(LO 1-6) Which of these terms is defined as being a central repository of
descriptions for all of the data attributes of the dataset?
a. Big Data
b. Data warehouse
c. Data dictionary
d. Data Analytics
Answer: c
6.(LO 1-5) Which skills were not emphasized that analytic-minded accountants
should have?
a. Developed an analytics mindset
b. Data scrubbing and data preparation
c. Classification of test approaches
d. Statistical data analysis competency
Answer: c
7.(LO 1-5) In which areas were skills not emphasized for analytic-minded
accountants?
a. Data quality
b. Descriptive data analysis
c. Data visualization and data reporting
d. Data and systems analysis and design
Answer: d
8.(LO 1-4) The IMPACT cycle includes all except the following steps:
a. perform test plan.
b. visualize the data.
c. master the data.
d. track outcomes.
Answer: b
9.(LO 1-4) The IMPACT cycle specifically includes all except the following steps:
a. data preparation.
b. communicate insights.
c. address and refine results.
d. perform test plan.
4
MANUAL
Data Analytics for Accounting,
3rd Edition
by Vernon Richardson,
Chapters 1 - 9
1
,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
2
,Solutions Manual – Chapter 1
Solutions to Multiple Choice
Questions
1.(LO 1-1) Big Data is often
described by the four Vs, or
a. volume, velocity, veracity,
and variability.
b. volume, velocity, veracity,
and variety.
c. volume, volatility, veracity,
and variability.
d. variability, velocity,
veracity, and variety.
Answer: b
2.LO 1-4) Which data approach attempts to assign each unit in a population
into a small set ofclasses (or groups) where the unit best fits?
a. Regression
b. Similarity matching
c. Co-occurrence grouping
d. Classification
Answer: d
3.(LO 1-4) Which data approach attempts to identify similar individuals
based on data knownabout them?
a. Classification
b. Regression
c. Similarity matching
d. Data reduction
Answer: c
4.(LO 1-4) Which data approach attempts to predict connections between
two data items?
a. Profiling
b. Classification
c. Link prediction
d. Regression
3
, Answer: c
5.(LO 1-6) Which of these terms is defined as being a central repository of
descriptions for all of the data attributes of the dataset?
a. Big Data
b. Data warehouse
c. Data dictionary
d. Data Analytics
Answer: c
6.(LO 1-5) Which skills were not emphasized that analytic-minded accountants
should have?
a. Developed an analytics mindset
b. Data scrubbing and data preparation
c. Classification of test approaches
d. Statistical data analysis competency
Answer: c
7.(LO 1-5) In which areas were skills not emphasized for analytic-minded
accountants?
a. Data quality
b. Descriptive data analysis
c. Data visualization and data reporting
d. Data and systems analysis and design
Answer: d
8.(LO 1-4) The IMPACT cycle includes all except the following steps:
a. perform test plan.
b. visualize the data.
c. master the data.
d. track outcomes.
Answer: b
9.(LO 1-4) The IMPACT cycle specifically includes all except the following steps:
a. data preparation.
b. communicate insights.
c. address and refine results.
d. perform test plan.
4
