Data Analytics for Accounting (3rd Edition, 2025) – Solutions Manual – Richardson

SOLUTION MANUAL for Data Analytics for Accounting,
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v 3rd Edition by Vernon Richardson, Chapters 1 - 9
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,TABLE OF CONTENTS
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Chapter 1: Data Analytics for Accounting and Identifying the Questions
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Chapter 2: Mastering the Data
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Chapter 3: Performing the Test Plan and Analyzing the Results
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Chapter 4: Communicating Results and Visualizations
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Chapter 5: The Modern Accounting Environment
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Chapter 6: Audit Data Analytics
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Chapter 7: Managerial Analytics
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Chapter 8: Financial Statement Analytics
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Chapter 9: Tax Analytics
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,Solutions Manual – Chapter 1 v v v v




Solutions to Multiple Choice Questions
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1. (LO 1-1) Big Data is often described by the four Vs, or
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a. volume, velocity, veracity, and variability.
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b. volume, velocity, veracity, and variety.
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c. volume, volatility, veracity, and variability.
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d. variability, velocity, veracity, and variety. v v v v




Answer: b v




2. LO 1-4) Which data approach attempts to assign each unit in a population into a small set ofclasses (or
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groups) where the unit best fits?
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a. Regression
b. Similarity matching v




c. Co-occurrence grouping v




d. Classification

Answer: d v




3. (LO 1-4) Which data approach attempts to identify similar individuals based on data knownabout them?
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a. Classification
b. Regression
c. Similarity matching v




d. Data reduction v




Answer: c v




4. (LO 1-4) Which data approach attempts to predict connections between two data items?
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a. Profiling
b. Classification
c. Link prediction v




d. Regression




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, Answer: c v




5. (LO 1-6) Which of these terms is defined as being a central repository of descriptions for all ofthe data
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attributes of the dataset?
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a. Big Data
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b. Data warehouse v




c. Data dictionary v




d. Data Analytics v




Answer: c v




6. (LO 1-5) Which skills were not emphasized that analytic-minded accountants should have?
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a. Developed an analytics mindset v v v




b. Data scrubbing and data preparation
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c. Classification of test approaches v v v




d. Statistical data analysis competency v v v




Answer: c v




7. (LO 1-5) In which areas were skills not emphasized for analytic-minded accountants?
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a. Data quality v




b. Descriptive data analysis v v




c. Data visualization and data reporting
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d. Data and systems analysis and design
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Answer: d v




8. (LO 1-4) The IMPACT cycle includes all except the following steps:
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a. perform test plan. v v




b. visualize the data. v v




c. master the data. v v




d. track outcomes. v




Answer: b v




9. (LO 1-4) The IMPACT cycle specifically includes all except the following steps:
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a. data preparation.
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b. communicate insights. v




c. address and refine results. v v v




d. perform test plan. v v




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