TEST BANK FOR Data and Analytics in Accounting An Integrated Approach
bh bh bh bh bh bh bh bh bh bh
st
1 Edition by Ann C. Dzuranin, Guido Geerts, Margarita Lenk
bh bh bh bh bh bh bh bh bh
Chapter 1 bh b h b h Data and Analytics in the Accounting Profession
bh bh bh bh bh bh
1) One key feature of self-service business intelligence (SSBI) software is that
bh bh bh bh bh bh bh bh bh bh
A) it is easy to use.
bh bh bh bh
B) it costs less to implement.
bh bh bh bh
C) it connects to multiple data sources.
bh bh bh bh bh
D) it provides dashboarding capabilities.
bh bh bh b
Answer: A
h b h
Explanation: There are two key features of SSBI software: it provides extended data processing
b h bh bh bh bh bh bh bh bh bh bh bh bh
capabilities for preparing data, analyzing data, and reporting data analysis results; and it is easy t
bh bh bh bh bh bh bh bh bh bh bh bh bh bh bh bh
o use.
bh
Diff: 1 bh
LO: 1-1 b h b h
Bloom: C Mi b h bh
n.: 1 b h
AACSB: Analytic b h b h
AICPA: FC: Measurement, Analysis, and Interpretation
b h b h bh bh bh bh
2) Alteryx is an example of SSBI software that can
bh bh bh bh bh bh bh bh
A) replace Excel since it can provide more complex functions.
bh bh bh bh bh bh bh bh
B) replace a database since it can store transactional data.
bh bh bh bh bh bh bh bh
C) replace the data warehouse. bh bh bh
D) be used to clean data by removing null values or removing leading or trailing spaces.
bh bh bh bh bh bh bh bh bh bh bh bh bh bh b
Answer: D
h b h
Explanation: There are two key features of SSBI software: it provides extended data processing
b h bh bh bh bh bh bh bh bh bh bh bh bh
capabilities for preparing data, analyzing data, and reporting data analysis results; and it is easy t
bh bh bh bh bh bh bh bh bh bh bh bh bh bh bh bh
o use.
bh
Diff: 1 bh
LO: 1-1 b h b h
Bloom: C Mi b h bh
n.: 1 b h
AACSB: Analytic b h b h
AICPA: FC: Measurement, Analysis, and Interpretation
b h b h bh bh bh bh
1
,LO: 1-2 b h b h
Bloom: C b h
Min.: 1
bh b h
3) How has data analytics changed the audit profession?
bh bh bh bh bh bh bh
A) The cost of audit engagements has increased due to the growing data volume that needs to be
bh bh bh bh bh bh bh bh bh bh bh bh bh bh bh bh
validated.
bh
B) The cost of audit engagements has decreased since the data that is received from clients are
bh bh bh bh bh bh bh bh bh bh bh bh bh bh bh
more trustworthy.
bh bh
C) An auditor can now analyze the entire population of audit-
bh bh bh bh bh bh bh bh bh
relevant data for exceptions or outliers.
bh bh bh bh bh
D) There is a greater assurance that financial statements do not have material misstatement since
bh bh bh bh bh bh bh bh bh bh bh bh bh
the data is more timely and complete.
bh bh bh bh bh bh bh
Answer: C b h b h
Explanation: Self- b h
service business intelligence tools has empowered accountants to use data and analytics to provid
bh bh bh bh bh bh bh bh bh bh bh bh bh
e value-added services to their clients and employers.
bh bh bh bh bh bh bh
Diff: 2 bh
LO: 1-1 b h b h
Bloom: AP M b h bh
in.: 1 b h
AACSB: Analytic b h b h
AICPA: FC: Measurement, Analysis, and Interpretation
b h b h bh bh bh bh
4) Data analytics is bh bh
A) the process of analyzing raw data to answer questions or provide insights.
bh bh bh bh bh bh bh bh bh bh bh
B) the process of storing relevant raw data so that data can be analyzed.
bh bh bh bh bh bh bh bh bh bh bh bh
C) the process of cleaning data so that data can be more trustworthy.
bh bh bh bh bh bh bh bh bh bh bh
D) the process of using machine learning and predictive modeling.
bh bh bh bh bh bh bh bh bh
Answer: A b h
Explanation: Data analytics is the process of analyzing raw data to answer questions or provide
b h bh bh bh bh bh bh bh bh bh bh bh bh bh bh
insights.
Diff: 1 bh
LO: 1-1 b h b h
Bloom: C Mi b h bh
n.: 1 b h
AACSB: Analytic b h b h
AICPA: FC: Measurement, Analysis, and Interpretation
b h b h bh bh bh bh
5) Robotic process automation (RPA) software is being used to
bh bh bh bh bh bh bh bh
A) build artificial intelligence models to eliminate manual audit tasks.
bh bh bh bh bh bh bh bh
B) analyze auditing data and performing substantive tests.
bh bh bh bh bh bh
C) audit sample-based testing so that auditors can focus on analysis and provide valuable insights.
bh bh bh bh bh bh bh bh bh bh bh bh bh
D) automate manual tasks so that auditors can focus on more strategic tasks.
bh bh bh bh bh bh bh bh bh bh bh b
Answer: D
h b h
Explanation: RPA can be used to perform routine financial accounting functions such as recor
b h bh bh bh bh bh bh bh bh bh bh bh bh
ding journal entries, creating trial balances, doing preliminary account analyses, and creating finan
bh bh bh bh bh bh bh bh bh bh bh bh
cial statements to let accountants spend more time analyzing data for insights.
bh bh bh bh bh bh bh bh bh bh bh
Diff: 1 bh
2
,LO: 1-2 b h b h
Bloom: C b h
Min.: 1
bh b h
LO: 1-1 b h b h
Bloom: C Mi b h bh
n.: 1b h
AACSB: Analytic b h b h
AICPA: FC: Measurement, Analysis, and Interpretation
b h b h bh bh bh bh
6) Robotic process automation (RPA)software can be used by financial accountants
bh bh bh bh bh bh bh bh bh
A) to perform routine financial accounting functions such as recording journal entries and creating
bh bh bh bh bh bh bh bh bh bh bh bh bh
trial balances.
bh
B) to perform non- bh bh
routine financial accounting functions such as analyzing potential mergers and acquisitions.
bh bh bh bh bh bh bh bh bh bh
C) to perform routine financial accounting functions such as determining revenue recognition on
bh bh bh bh bh bh bh bh bh bh bh b
hcomplex construction projects. bh bh
D) to make predictions within financial capital markets.
bh bh bh bh bh bh bh
Answer: A b h
Explanation: RPA can be used to perform routine financial accounting functions such as recor
b h bh bh bh bh bh bh bh bh bh bh bh bh
ding journal entries, creating trial balances, doing preliminary account analyses, and creating finan
bh bh bh bh bh bh bh bh bh bh bh bh
cial statements to let accountants spend more time analyzing data for insights.
bh bh bh bh bh bh bh bh bh bh bh
Diff: 2 bh
LO: 1-1 b h b h
Bloom: AP M b h bh
in.: 1 b h
AACSB: Analytic b h b h
AICPA: FC: Measurement, Analysis, and Interpretation
b h b h bh bh bh bh
7) Robotic process automation (RPA) software can be used by management accountants
bh bh bh bh bh bh bh bh bh bh
A) to create automatic financial performance reports for department managers.
bh bh bh bh bh bh bh bh
B) to evaluate return on investments on capital projects.
bh bh bh bh bh bh bh
C) to evaluate strategic sourcing opportunities with vendors.
bh bh bh bh bh bh
D) to identify the cost drivers for activity-
bh bh bh bh bh bh
based costing models. Answer: A
bh bh bh b h
Explanation: RPA can be used to perform routine financial accounting functions such as recor
b h bh bh bh bh bh bh bh bh bh bh bh bh
ding journal entries, creating trial balances, doing preliminary account analyses, and creating finan
bh bh bh bh bh bh bh bh bh bh bh bh
cial statements to let accountants spend more time analyzing data for insights.
bh bh bh bh bh bh bh bh bh bh bh
Diff: 2 bh
LO: 1-1 b h b h
Bloom: AP M b h bh
in.: 1 b h
AACSB: Analytic b h b h
AICPA: FC: Measurement, Analysis, and Interpretation
b h b h bh bh bh bh
8) Robotic process automation software (RPA) can be used by tax accountants
bh bh bh bh bh bh bh bh bh bh
A) to analyze potential saving opportunities for the client.
bh bh bh bh bh bh bh
B) to extract data from the client's financial statements and automatically populate the data into the t
bh bh bh bh bh bh bh bh bh bh bh bh bh bh bh
ax preparation software.
bh bh
3
, LO: 1-2 b h b h
Bloom: C b h
Min.: 1
bh b h
C) to assess the client's residency for tax purposes.
bh bh bh bh bh bh bh
D) to respond to IRS inquiries.
bh bh bh bh b
Answer: B
h b h
Explanation: RPA can be used to perform routine financial accounting functions such as recor
b h bh bh bh bh bh bh bh bh bh bh bh bh
ding journal entries, creating trial balances, doing preliminary account analyses, and creating finan
bh bh bh bh bh bh bh bh bh bh bh bh
cial statements to let accountants spend more time analyzing data for insights.
bh bh bh bh bh bh bh bh bh bh bh
Diff: 2 bh
AACSB: Analytic b h b h
AICPA: FC: Measurement, Analysis, and Interpretation
b h b h bh bh bh bh
9) With SSBI software, management accountants can use data to
bh bh bh bh bh bh bh bh
A) automate non-routine tasks. bh bh
B) identify and manage risks. bh bh bh
C) store transactional data in a central repository.
bh bh bh bh bh bh
D) None of the answer choices are correct.
bh bh bh bh bh bh bh
Answer: B b h
Explanation: With SSBI software, management accountants can more easily use data to help: id
b h bh bh bh bh bh bh bh bh bh bh bh bh
entify and manage risks; improve budgeting and forecasting by incorporating more data; autom
bh bh bh bh bh bh bh bh bh bh bh bh
ate internal reporting; identify operational improvements; and create dashboards of key perform
bh bh bh bh bh bh bh bh bh bh bh
ance indicators (KPI).
bh bh
Diff: 2 bh
LO: 1-1 b h b h
Bloom: AP M b h bh
in.: 1b h
AACSB: Analytic b h b h
AICPA: FC: Measurement, Analysis, and Interpretation
b h b h bh bh bh bh
10) The stages in the data analysis process are
bh bh bh bh bh bh bh
A) Analyze, Report, and Reflection. bh bh bh
B) Strategize, Plan, and Analyze. bh bh bh
C) Plan, Analyze, and Report bh bh bh
D) Plan, Report, and Reflection. bh bh bh b
Answer: C
h b h
Explanation: The data analysis process is comprised of three equally important stages: Plan, An
b h bh bh bh bh bh bh bh bh bh bh bh bh
alyze, and Report. bh bh
Diff: 1 bh
LO: 1-2 b h b h
Bloom: C Mi b h bh
n.: 1b h
AACSB: Analytic b h b h
AICPA: FC: Measurement, Analysis, and Interpretation
b h b h bh bh bh bh
11) In the Planning stage of the data analysis process, the Planning stage involves
bh bh bh bh bh bh bh bh bh bh bh bh
A) identifying the problem, selecting the data sources, and creating an implementation plan.
bh bh bh bh bh bh bh bh bh bh bh
B) selecting the data, evaluating alternatives, and creating a strategy to perform the analysis.
bh bh bh bh bh bh bh bh bh bh bh bh
4
bh bh bh bh bh bh bh bh bh bh
st
1 Edition by Ann C. Dzuranin, Guido Geerts, Margarita Lenk
bh bh bh bh bh bh bh bh bh
Chapter 1 bh b h b h Data and Analytics in the Accounting Profession
bh bh bh bh bh bh
1) One key feature of self-service business intelligence (SSBI) software is that
bh bh bh bh bh bh bh bh bh bh
A) it is easy to use.
bh bh bh bh
B) it costs less to implement.
bh bh bh bh
C) it connects to multiple data sources.
bh bh bh bh bh
D) it provides dashboarding capabilities.
bh bh bh b
Answer: A
h b h
Explanation: There are two key features of SSBI software: it provides extended data processing
b h bh bh bh bh bh bh bh bh bh bh bh bh
capabilities for preparing data, analyzing data, and reporting data analysis results; and it is easy t
bh bh bh bh bh bh bh bh bh bh bh bh bh bh bh bh
o use.
bh
Diff: 1 bh
LO: 1-1 b h b h
Bloom: C Mi b h bh
n.: 1 b h
AACSB: Analytic b h b h
AICPA: FC: Measurement, Analysis, and Interpretation
b h b h bh bh bh bh
2) Alteryx is an example of SSBI software that can
bh bh bh bh bh bh bh bh
A) replace Excel since it can provide more complex functions.
bh bh bh bh bh bh bh bh
B) replace a database since it can store transactional data.
bh bh bh bh bh bh bh bh
C) replace the data warehouse. bh bh bh
D) be used to clean data by removing null values or removing leading or trailing spaces.
bh bh bh bh bh bh bh bh bh bh bh bh bh bh b
Answer: D
h b h
Explanation: There are two key features of SSBI software: it provides extended data processing
b h bh bh bh bh bh bh bh bh bh bh bh bh
capabilities for preparing data, analyzing data, and reporting data analysis results; and it is easy t
bh bh bh bh bh bh bh bh bh bh bh bh bh bh bh bh
o use.
bh
Diff: 1 bh
LO: 1-1 b h b h
Bloom: C Mi b h bh
n.: 1 b h
AACSB: Analytic b h b h
AICPA: FC: Measurement, Analysis, and Interpretation
b h b h bh bh bh bh
1
,LO: 1-2 b h b h
Bloom: C b h
Min.: 1
bh b h
3) How has data analytics changed the audit profession?
bh bh bh bh bh bh bh
A) The cost of audit engagements has increased due to the growing data volume that needs to be
bh bh bh bh bh bh bh bh bh bh bh bh bh bh bh bh
validated.
bh
B) The cost of audit engagements has decreased since the data that is received from clients are
bh bh bh bh bh bh bh bh bh bh bh bh bh bh bh
more trustworthy.
bh bh
C) An auditor can now analyze the entire population of audit-
bh bh bh bh bh bh bh bh bh
relevant data for exceptions or outliers.
bh bh bh bh bh
D) There is a greater assurance that financial statements do not have material misstatement since
bh bh bh bh bh bh bh bh bh bh bh bh bh
the data is more timely and complete.
bh bh bh bh bh bh bh
Answer: C b h b h
Explanation: Self- b h
service business intelligence tools has empowered accountants to use data and analytics to provid
bh bh bh bh bh bh bh bh bh bh bh bh bh
e value-added services to their clients and employers.
bh bh bh bh bh bh bh
Diff: 2 bh
LO: 1-1 b h b h
Bloom: AP M b h bh
in.: 1 b h
AACSB: Analytic b h b h
AICPA: FC: Measurement, Analysis, and Interpretation
b h b h bh bh bh bh
4) Data analytics is bh bh
A) the process of analyzing raw data to answer questions or provide insights.
bh bh bh bh bh bh bh bh bh bh bh
B) the process of storing relevant raw data so that data can be analyzed.
bh bh bh bh bh bh bh bh bh bh bh bh
C) the process of cleaning data so that data can be more trustworthy.
bh bh bh bh bh bh bh bh bh bh bh
D) the process of using machine learning and predictive modeling.
bh bh bh bh bh bh bh bh bh
Answer: A b h
Explanation: Data analytics is the process of analyzing raw data to answer questions or provide
b h bh bh bh bh bh bh bh bh bh bh bh bh bh bh
insights.
Diff: 1 bh
LO: 1-1 b h b h
Bloom: C Mi b h bh
n.: 1 b h
AACSB: Analytic b h b h
AICPA: FC: Measurement, Analysis, and Interpretation
b h b h bh bh bh bh
5) Robotic process automation (RPA) software is being used to
bh bh bh bh bh bh bh bh
A) build artificial intelligence models to eliminate manual audit tasks.
bh bh bh bh bh bh bh bh
B) analyze auditing data and performing substantive tests.
bh bh bh bh bh bh
C) audit sample-based testing so that auditors can focus on analysis and provide valuable insights.
bh bh bh bh bh bh bh bh bh bh bh bh bh
D) automate manual tasks so that auditors can focus on more strategic tasks.
bh bh bh bh bh bh bh bh bh bh bh b
Answer: D
h b h
Explanation: RPA can be used to perform routine financial accounting functions such as recor
b h bh bh bh bh bh bh bh bh bh bh bh bh
ding journal entries, creating trial balances, doing preliminary account analyses, and creating finan
bh bh bh bh bh bh bh bh bh bh bh bh
cial statements to let accountants spend more time analyzing data for insights.
bh bh bh bh bh bh bh bh bh bh bh
Diff: 1 bh
2
,LO: 1-2 b h b h
Bloom: C b h
Min.: 1
bh b h
LO: 1-1 b h b h
Bloom: C Mi b h bh
n.: 1b h
AACSB: Analytic b h b h
AICPA: FC: Measurement, Analysis, and Interpretation
b h b h bh bh bh bh
6) Robotic process automation (RPA)software can be used by financial accountants
bh bh bh bh bh bh bh bh bh
A) to perform routine financial accounting functions such as recording journal entries and creating
bh bh bh bh bh bh bh bh bh bh bh bh bh
trial balances.
bh
B) to perform non- bh bh
routine financial accounting functions such as analyzing potential mergers and acquisitions.
bh bh bh bh bh bh bh bh bh bh
C) to perform routine financial accounting functions such as determining revenue recognition on
bh bh bh bh bh bh bh bh bh bh bh b
hcomplex construction projects. bh bh
D) to make predictions within financial capital markets.
bh bh bh bh bh bh bh
Answer: A b h
Explanation: RPA can be used to perform routine financial accounting functions such as recor
b h bh bh bh bh bh bh bh bh bh bh bh bh
ding journal entries, creating trial balances, doing preliminary account analyses, and creating finan
bh bh bh bh bh bh bh bh bh bh bh bh
cial statements to let accountants spend more time analyzing data for insights.
bh bh bh bh bh bh bh bh bh bh bh
Diff: 2 bh
LO: 1-1 b h b h
Bloom: AP M b h bh
in.: 1 b h
AACSB: Analytic b h b h
AICPA: FC: Measurement, Analysis, and Interpretation
b h b h bh bh bh bh
7) Robotic process automation (RPA) software can be used by management accountants
bh bh bh bh bh bh bh bh bh bh
A) to create automatic financial performance reports for department managers.
bh bh bh bh bh bh bh bh
B) to evaluate return on investments on capital projects.
bh bh bh bh bh bh bh
C) to evaluate strategic sourcing opportunities with vendors.
bh bh bh bh bh bh
D) to identify the cost drivers for activity-
bh bh bh bh bh bh
based costing models. Answer: A
bh bh bh b h
Explanation: RPA can be used to perform routine financial accounting functions such as recor
b h bh bh bh bh bh bh bh bh bh bh bh bh
ding journal entries, creating trial balances, doing preliminary account analyses, and creating finan
bh bh bh bh bh bh bh bh bh bh bh bh
cial statements to let accountants spend more time analyzing data for insights.
bh bh bh bh bh bh bh bh bh bh bh
Diff: 2 bh
LO: 1-1 b h b h
Bloom: AP M b h bh
in.: 1 b h
AACSB: Analytic b h b h
AICPA: FC: Measurement, Analysis, and Interpretation
b h b h bh bh bh bh
8) Robotic process automation software (RPA) can be used by tax accountants
bh bh bh bh bh bh bh bh bh bh
A) to analyze potential saving opportunities for the client.
bh bh bh bh bh bh bh
B) to extract data from the client's financial statements and automatically populate the data into the t
bh bh bh bh bh bh bh bh bh bh bh bh bh bh bh
ax preparation software.
bh bh
3
, LO: 1-2 b h b h
Bloom: C b h
Min.: 1
bh b h
C) to assess the client's residency for tax purposes.
bh bh bh bh bh bh bh
D) to respond to IRS inquiries.
bh bh bh bh b
Answer: B
h b h
Explanation: RPA can be used to perform routine financial accounting functions such as recor
b h bh bh bh bh bh bh bh bh bh bh bh bh
ding journal entries, creating trial balances, doing preliminary account analyses, and creating finan
bh bh bh bh bh bh bh bh bh bh bh bh
cial statements to let accountants spend more time analyzing data for insights.
bh bh bh bh bh bh bh bh bh bh bh
Diff: 2 bh
AACSB: Analytic b h b h
AICPA: FC: Measurement, Analysis, and Interpretation
b h b h bh bh bh bh
9) With SSBI software, management accountants can use data to
bh bh bh bh bh bh bh bh
A) automate non-routine tasks. bh bh
B) identify and manage risks. bh bh bh
C) store transactional data in a central repository.
bh bh bh bh bh bh
D) None of the answer choices are correct.
bh bh bh bh bh bh bh
Answer: B b h
Explanation: With SSBI software, management accountants can more easily use data to help: id
b h bh bh bh bh bh bh bh bh bh bh bh bh
entify and manage risks; improve budgeting and forecasting by incorporating more data; autom
bh bh bh bh bh bh bh bh bh bh bh bh
ate internal reporting; identify operational improvements; and create dashboards of key perform
bh bh bh bh bh bh bh bh bh bh bh
ance indicators (KPI).
bh bh
Diff: 2 bh
LO: 1-1 b h b h
Bloom: AP M b h bh
in.: 1b h
AACSB: Analytic b h b h
AICPA: FC: Measurement, Analysis, and Interpretation
b h b h bh bh bh bh
10) The stages in the data analysis process are
bh bh bh bh bh bh bh
A) Analyze, Report, and Reflection. bh bh bh
B) Strategize, Plan, and Analyze. bh bh bh
C) Plan, Analyze, and Report bh bh bh
D) Plan, Report, and Reflection. bh bh bh b
Answer: C
h b h
Explanation: The data analysis process is comprised of three equally important stages: Plan, An
b h bh bh bh bh bh bh bh bh bh bh bh bh
alyze, and Report. bh bh
Diff: 1 bh
LO: 1-2 b h b h
Bloom: C Mi b h bh
n.: 1b h
AACSB: Analytic b h b h
AICPA: FC: Measurement, Analysis, and Interpretation
b h b h bh bh bh bh
11) In the Planning stage of the data analysis process, the Planning stage involves
bh bh bh bh bh bh bh bh bh bh bh bh
A) identifying the problem, selecting the data sources, and creating an implementation plan.
bh bh bh bh bh bh bh bh bh bh bh
B) selecting the data, evaluating alternatives, and creating a strategy to perform the analysis.
bh bh bh bh bh bh bh bh bh bh bh bh
4
