Test Bank Data Analytics in Accounting Integrated Approach 1st Dzuranin

TEST BANK FOR
x x


Data and Analytics in Accounting An Integrated Approach 1st Edition by Ann C. D
x x x x x x x x x x x x x


zuranin, Guido Geerts, Margarita Lenk
x x x x


Chapterx1-10

Chapterx1x x DataxandxAnalyticsxinxthexAccountingxProfession

1) xOnexkeyxfeaturexofxself-servicexbusinessxintelligencex(SSBI)xsoftwarexisxthat
A) itxisxeasyxtoxuse.
B) itxcostsxlessxtoximplement.
C) itxconnectsxtoxmultiplexdataxsources.
D) itxprovidesxdashboardingxcapabilities.x
Answer:x A
Explanation:x TherexarextwoxkeyxfeaturesxofxSSBIxsoftware:xitxprovidesxextendedxdataxprocessingxc
apabilitiesxforxpreparingxdata,xanalyzingxdata,xandxreportingxdataxanalysisxresults;xandxitxisxeasyxtoxus
e.
Diff:x1
LO:x x 1-1
Bloom:x CxMi
n.:x 1
AACSB:x x Analytic
AICPA:x x FC:xMeasurement,xAnalysis,xandxInterpretation

2) AlteryxxisxanxexamplexofxSSBIxsoftwarexthatxcan
A) replacexExcelxsincexitxcanxprovidexmorexcomplexxfunctions.
B) replacexaxdatabasexsincexitxcanxstorextransactionalxdata.
C) replacexthexdataxwarehouse.
D) bexusedxtoxcleanxdataxbyxremovingxnullxvaluesxorxremovingxleadingxorxtrailingxspaces.x
Answer:x D
Explanation:x TherexarextwoxkeyxfeaturesxofxSSBIxsoftware:xitxprovidesxextendedxdataxprocessingxc
apabilitiesxforxpreparingxdata,xanalyzingxdata,xandxreportingxdataxanalysisxresults;xandxitxisxeasyxtoxus
e.
Diff:x1
LO:x x 1-1
Bloom:x CxMi
n.:x 1
AACSB:x x Analytic
AICPA:x x FC:xMeasurement,xAnalysis,xandx Interpretation




1

,3) Howxhasxdataxanalyticsxchangedxthexauditxprofession?
A) Thexcostxofxauditxengagementsxhasxincreasedxduextoxthexgrowingxdataxvolumexthatxneedsxtoxbexv
alidated.
B) Thexcostxofxauditxengagementsxhasxdecreasedxsincexthexdataxthatxisxreceivedxfromxclientsxarex
morextrustworthy.
C) Anxauditorxcanxnowxanalyzexthexentirexpopulationxofxaudit-
relevantxdataxforxexceptionsxorxoutliers.
D) Therexisxaxgreaterxassurancexthatxfinancialxstatementsxdoxnotxhavexmaterialxmisstatementxsincext
hexdataxisxmorextimelyxandxcomplete.
Answer:x x C
Explanation:x Self-
servicexbusinessxintelligencextoolsxhasxempoweredxaccountantsxtoxusexdataxandxanalyticsxtoxprovidexvalue-
addedxservicesxtoxtheirxclientsxandxemployers.
Diff:x2
LO:x x 1-1
Bloom:x APx
Min.:x 1
AACSB:x x Analytic
AICPA:x x FC:xMeasurement,xAnalysis,xandxInterpretation

4) Dataxanalyticsxis
A) thexprocessxofxanalyzingxrawxdataxtoxanswerxquestionsxorxprovidexinsights.
B) thexprocessxofxstoringxrelevantxrawxdataxsoxthatxdataxcanxbexanalyzed.
C) thexprocessxofxcleaningxdataxsoxthatxdataxcanxbexmorextrustworthy.
D) thexprocessxofxusingxmachinexlearningxandxpredictivexmodeling.x
Answer:x A
Explanation:x Dataxanalyticsxisxthexprocessxofxanalyzingxrawxdataxtoxanswerxquestionsxorxprovidexin
sights.
Diff:x1
LO:x x 1-1
Bloom:x CxMi
n.:x 1
AACSB:x x Analytic
AICPA:x x FC:xMeasurement,xAnalysis,xandxInterpretation

5) Roboticxprocessxautomationx(RPA)xsoftwarexisxbeingxusedxto
A) buildxartificialxintelligencexmodelsxtoxeliminatexmanualxauditxtasks.
B) analyzexauditingxdataxandxperformingxsubstantivextests.
C) auditxsample-basedxtestingxsoxthatxauditorsxcanxfocusxonxanalysisxandxprovidexvaluablexinsights.
D) automatexmanualxtasksxsoxthatxauditorsxcanxfocusxonxmorexstrategicxtasks.x
Answer:x D
Explanation:x RPAxcanxbexusedxtoxperformxroutinexfinancialxaccountingxfunctionsxsuchxasxrecordin
gxjournalxentries,xcreatingxtrialxbalances,xdoingxpreliminaryxaccountxanalyses,xandxcreatingxfinancialx
statementsxtoxletxaccountantsxspendxmorextimexanalyzingxdataxforxinsights.
Diff:x1
LO:x x 1-1
Bloom:x CxMi
n.:x 1
2

,AACSB:x x Analytic




3

, AICPA:x x FC:xMeasurement,xAnalysis,xandxInterpretation

6) Roboticxprocessxautomationx(RPA)softwarexcanxbexusedxbyxfinancialxaccountants
A) toxperformxroutinexfinancialxaccountingxfunctionsxsuchxasxrecordingxjournalxentriesxandxcreatingxt
rialxbalances.
B) toxperformxnon-
routinexfinancialxaccountingxfunctionsxsuchxasxanalyzingxpotentialxmergersxandxacquisitions.
C) toxperformxroutinexfinancialxaccountingxfunctionsxsuchxasxdeterminingxrevenuexrecognitionxonxc
omplexxconstructionxprojects.
D) toxmakexpredictionsxwithinxfinancialxcapitalxmarkets.x
Answer:x A
Explanation:x RPAxcanxbexusedxtoxperformxroutinexfinancialxaccountingxfunctionsxsuchxasxrecordin
gxjournalxentries,xcreatingxtrialxbalances,xdoingxpreliminaryxaccountxanalyses,xandxcreatingxfinancialx
statementsxtoxletxaccountantsxspendxmorextimexanalyzingxdataxforxinsights.
Diff:x2
LO:x x 1-1
Bloom:x APx
Min.:x 1
AACSB:x x Analytic
AICPA:x x FC:xMeasurement,xAnalysis,xandxInterpretation

7) Roboticxprocessxautomationx(RPA)xsoftwarexcanxbexusedxbyxmanagementxaccountants
A) toxcreatexautomaticxfinancialxperformancexreportsxforxdepartmentxmanagers.
B) toxevaluatexreturnxonxinvestmentsxonxcapitalxprojects.
C) toxevaluatexstrategicxsourcingxopportunitiesxwithxvendors.
D) toxidentifyxthexcostxdriversxforxactivity-
basedxcostingxmodels.xAnswer:x A
Explanation:x RPAxcanxbexusedxtoxperformxroutinexfinancialxaccountingxfunctionsxsuchxasxrecordin
gxjournalxentries,xcreatingxtrialxbalances,xdoingxpreliminaryxaccountxanalyses,xandxcreatingxfinancialx
statementsxtoxletxaccountantsxspendxmorextimexanalyzingxdataxforxinsights.
Diff:x2
LO:x x 1-1
Bloom:x APx
Min.:x 1
AACSB:x x Analytic
AICPA:x x FC:xMeasurement,xAnalysis,xandxInterpretation

8) Roboticxprocessxautomationxsoftwarex(RPA)xcanxbexusedxbyxtaxxaccountants
A) toxanalyzexpotentialxsavingxopportunitiesxforxthexclient.
B) toxextractxdataxfromxthexclient'sxfinancialxstatementsxandxautomaticallyxpopulatexthexdataxintoxthext
axxpreparationxsoftware.
C) toxassessxthexclient'sxresidencyxforxtaxxpurposes.
D) toxrespondxtoxIRSxinquiries.x
Answer:x B
Explanation:x RPAxcanxbexusedxtoxperformxroutinexfinancialxaccountingxfunctionsxsuchxasxrecordin
gxjournalxentries,xcreatingxtrialxbalances,xdoingxpreliminaryxaccountxanalyses,xandxcreatingxfinancialx
statementsxtoxletxaccountantsxspendxmorextimexanalyzingxdataxforxinsights.
Diff:x2
4