TEST BANK
,Chapter 1
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 decision maker and their specific needs.
⊚ true
⊚ false
19) With a goal to give organizations the information they need to make sound and timely
business decisions, data analytics often involves all of the following except:
A) technologies.
B) statistics.
C) strategies.
D) databases.