TEST BANK
Data Analytics for Accounting
Vernon Richardson
1st Edition
All Chapters Complete (Questions with Verified Answers)
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Table of Contents — 1st Edition
1. Data Analytics in Accounting and Business
2. Data Preparation and Cleaning
3. Modeling and Evaluation: Going from Defining
Business Problems and Data Understanding to
Analyzing Data and Answering Questions
4. Visualization: Using Visualizations and Summaries to
Share Results with Stakeholders
5. The Modern Audit and Continuous Auditing
6. Audit Data Analytics
7. Generating Key Performance Indicators
8. Using Financial Statement Data
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Chapter 1 Data Analytics in Accounting and Business
1) Data analytics is the process of evaluating data with the purpose of drawing conclusions to
address business questions.
Answer: TRUE
Difficulty: 1 Easy
Topic: Define Data Analytics
Learning Objective: 01-01 Define Data Analytics.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
2) The process of data analytics aims to transform raw information into data to create value.
Answer: FALSE
Difficulty: 1 Easy
Topic: Define Data Analytics
Learning Objective: 01-01 Define Data Analytics.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
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.
Answer: FALSE
Difficulty: 1 Easy
Topic: How Data Analytics Affects Business
Learning Objective: 01-02 Understand why Data Analytics matters to business.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
4) Auditors can use social media to hear what customers are saying about a company and
compare this to inventory obsolescence and other estimates.
Answer: TRUE
Difficulty: 2 Medium
Topic: Financial Reporting
Learning Objective: 01-03 Explain why Data Analytics matters to accountants.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
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5) Data analytics allows auditors to glean insights that are beneficial to the client, without
breaching independence.
Answer: TRUE
Difficulty: 2 Medium
Topic: Auditing
Learning Objective: 01-03 Explain why Data Analytics matters to accountants.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
6) The predictive analytics is an important aspect of data analytics for auditors, but is not
applicable for tax accountants.
Answer: FALSE
Difficulty: 1 Easy
Topic: Tax
Learning Objective: 01-03 Explain why Data Analytics matters to accountants.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
7) The I in IMPACT Cycle represents Identify the Question.
Answer: TRUE
Difficulty: 2 Medium
Topic: The Data Analytics Process Using the Impact Cycle
Learning Objective: 01-04 Describe the Data Analytics Process Using the IMPACT Cycle.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
8) The M in IMPACT Cycle represents Master the Data.
Answer: TRUE
Difficulty: 2 Medium
Topic: The Data Analytics Process Using the Impact Cycle
Learning Objective: 01-04 Describe the Data Analytics Process Using the IMPACT Cycle.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making