Data Analytics for Accounting 3rd Edition (Vernon Richardson) — Chapters 1–9 Test Bank + Detailed Solutions | Real Exam Practice, Concept Coverage & Step-by-Step Correct Solutions

Franklyn A Plus Pass




TEST BANK for Data Analytics for
Accounting 3rd Edition by Vernon
Richardson, Ryan A. Teeter & Katie
L. Terrell
ALL CHAPTERS 1-9| A+ PASS
ALL ANSWERS AT THE BACK OF EACH CHAPTER




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Chapter 01

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

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
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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
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12) The T in IMPACT Cycle represents Track Outcomes.
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⊚ true
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⊚ 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
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