Solution Manual For Data Analytics for Accounting, 3rd Edition Richardson

Test21Bank21for21Data21Analytics21for21Accounting213rd21Ed
ition21by21Rochardson21and21Teeter

,ACCESS2 1 Test2 1 Bank2 1 for2 1 Data2 1 Analytics2 1 for2 1 Accounting2 1 3rd
Edition
RichardsoRichardson,21Teeter,21Terrell21–21Data
Analytics21for21Accounting,213ne
2
1

Solutions21Manual21–21Chapter211
Solutions21to21Multiple21Choice21Questions

1. (LO211-1)21Big21Data21is21often21described21by21the21four21Vs,21or

a. volume,21velocity,21veracity,21and21variability.
b. volume,21velocity,21veracity,21and21variety.
c. volume,21volatility,21veracity,21and21variability.
d. variability,21velocity,21veracity,21and21variety.

Answer:21b

2. LO211-
4)21Which21data21approach21attempts21to21assign21each21unit21in21a21population21into21a21sm
all21set21of21classes21(or21groups)21where21the21unit21best21fits?

a. Regression
b. Similarity21matching
c. Co-occurrence21grouping
d. Classification

Answer:21d

3. (LO211-
4)21Which21data21approach21attempts21to21identify21similar21individuals21based21on21data21k
nown21about21them?

a. Classification
b. Regression
c. Similarity21matching
d. Data21reduction

Answer:21c

4. (LO211-4)21Which21data21approach21attempts21to21predict21connections21between21two21data21items?21a.

Profiling

b. Classification
c. Link21prediction
d. Regression

Answer:21c

,ACCESS2 1 Test2 1 Bank2 1 for2 1 Data2 1 Analytics2 1 for2 1 Accounting2 1 3rd
Edition
RichardsoRichardson,21Teeter,21Terrell21–21Data
Analytics21for21Accounting,213ne
2
1
5. (LO211-
6)21Which21of21these21terms21is21defined21as21being21a21central21repository21of21descriptions21f
or21all21of21the21data21attributes21of21the21dataset?
a. Big21Data
b. Data21warehouse
c. Data21dictionary
d. Data21Analytics

Answer:21c

6. (LO211-5)21Which21skills21were21not21emphasized21that21analytic-minded21accountants21should21have?

a. Developed21an21analytics21mindset
b. Data21scrubbing21and21data21preparation
c. Classification21of21test21approaches
d. Statistical21data21analysis21competency

Answer:21c

7. (LO211-5)21In21which21areas21were21skills21not21emphasized21for21analytic-

minded21accountants?21a.21Data21quality

b. Descriptive21data21analysis
c. Data21visualization21and21data21reporting
d. Data21and21systems21analysis21and21design

Answer:21d

8. (LO211-4)21The21IMPACT21cycle21includes21all21except21the21following21steps:

a. perform21test21plan.
b. visualize21the21data.
c. master21the21data.
d. track21outcomes.

Answer:21b

9. (LO211-4)21The21IMPACT21cycle21specifically21includes21all21except21the21following21steps:

a. data21preparation.

b. communicate21insights.
c. address21and21refine21results.
d. perform21test21plan.

, ACCESS2 1 Test2 1 Bank2 1 for2 1 Data2 1 Analytics2 1 for2 1 Accounting2 1 3rd
Edition
RichardsoRichardson,21Teeter,21Terrell21–21Data
Analytics21for21Accounting,213ne
2
1
Answer:21a


10. LO211-
1)21By21the21year212024,21the21volume21of21data21created,21captured,21copied,21and21consum
ed21worldwide21will21be2114921 .
a. zettabytes
b. petabytes
c. exabytes
d. yottabytes

Answer:21a

Solutions21to21Discussion21and21Analysis21Questions

1. The21accounting21function21is21one21of21being21an21information21provider.2 1 To21the21extent2
1that21data21is21available21to21address21accounting21questions,21be21they21tax,21managerial,21
audit21or21financial21questions.21With21such21rich21available21data,21and21software21tools21to21
prepare21and21analyze21the21data,21data21analytics21will21continue21to21be21an21important21to
ol21for21accountants21to21use.

2. Data21analytics21is21defined21as21the21process21of21evaluating21data21with21the21purpose21
of21drawing21conclusions21to21address21business21questions.21Indeed,21effective21Data21Ana
lytics21provides21a21way21to21search21through21large21structured21and21unstructured21data2
1to21identify21unknown21patterns21or21relationships.


A21university21might21learn21from21the21analyzing21the21demographics21of21its21current21set2
1of21students21in21order21to21attract21its21future21student21recruits.21Did21they21come21from2
1cities21or21high21schools21that21were21close21by?21Were21their21parents21alumni21of21the21u
niversity?21Did21they21score21high21on21certain21parts21of21the21ACT?21Were21those21offered
21a21scholarship21more21likely21to21attend,21etc.?21Was21social21media21effective21in21attracti
ng21new,21potentially21stronger21students?21By21analyzing21this21type21of21data,21previously2
1unknown21patterns21will21emerge21that21will21make21recruiting21students21more21effective.


3. There21are21many21potential21answers.2 1 For21example,21Monsanto21may21use21mathematical
21and21statistical21models21to21plot21out21the21best21times21to21plant21both21male21and21fem
ale21plants21and21where21to21plant21them21to21maximize21yield.21(https://www.cio.com/article
/3221621/analytics/6-dataanalytics-21success-stories-an-inside-look.html#tk.cio_rs)

4. There21are21many21potential21answers.21Data21analytics21gives21both21internal21and21externa
l21auditors21additional21tools21to21examine21every21accounting21transaction21and21assess21for
21compliance21with21GAAP.21The21audit21process21is21changing21from21a21traditional21process
21toward21a21more21automated21one,21which21will21allow21audit21professionals21to21focus21
more21on21the21logic21and21rationale21behind21data21queries21and21less21on21the21gathering2
1of21the21actual21data.21No21longer21will21they21be21simply21checking21for21errors,21material2
1misstatements,21fraud,21and21risk21in21financial21statements21or21merely21be21reporting21th
eir21findings21at21the21end21of21the21engagement.21Instead,21audit21professionals21will21now2
1be21collecting21and21analyzing21the21company’s21data21similar21to21the21way21a21business21
analyst21would21help21management21make21better21business21decisions.2 1 In21this21way,21da
ta21analytics21offers21value21to21the21audit21function.