,
,Solution Manual for
Data and Analytics in Accounting An Integrated Approach 1e Ann C.
Dzuranin, Guido Geerts, Margarita Lenk
CHAPTER 1
DATA AND ANALYTICS IN THE ACCOUNTING
PROFESSION
Learning Objectives:
LO 1.1: Summarize how advances in data and technology are impacting accounting professionals.
LO 1.2: Describe the stages of the data analysis process.
LO 1.3: Identify the skills necessary to perform data analysis.
LO 1.4: Explain how to apply a data analytics mindset during the data analysis process.
ANSWERS TO MULTIPLE CHOICE QUESTIONS
LO 1.2, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
1. A Leverage Technology to Develop and Enhance Functional Competencies
LO 1.1, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
Leverage Technology to Develop and Enhance Functional Competencies
7. D
2. C LO 1.2, BT: C, Difficulty: Medium, TOT: 3 min, AACSB: Analytic, AICPA FC:
LO 1.1, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
Leverage Technology to Develop and Enhance Functional Competencies
8. C
3. C LO 1.2, BT: C, Difficulty: Medium, TOT: 3 min, AACSB: Analytic, AICPA FC:
LO 1.2, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
Leverage Technology to Develop and Enhance Functional Competencies
9. A
4. B LO 1.3, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
LO 1 2, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
Leverage Technology to Develop and Enhance Functional Competencies
10.D
5. B LO 1.3, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
LO 1.2, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
Leverage Technology to Develop and Enhance Functional Competencies
11.B
6. C
1-1
, LO 1.3, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
Leverage Technology to Develop and Enhance Functional Competencies
14.A
LO 1.4, BT: C, Difficulty: Medium, TOT: 3 min, AACSB: Analytic, AICPA FC:
Leverage Technology to Develop and Enhance Functional Competencies
12.A
LO 1.4, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
Leverage Technology to Develop and Enhance Functional Competencies
15.B
LO 1.4, BT: C, Difficulty: Medium, TOT: 3 min, AACSB: Analytic, AICPA FC:
Leverage Technology to Develop and Enhance Functional Competencies
13.D
LO 1.4, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
Leverage Technology to Develop and Enhance Functional Competencies
ANSWERS TO REVIEW QUESTIONS
1. Both the CPA exam and the CMA exam have added data analytic content to their exams. This is in
response to what new professionals need to know as they enter the accounting profession. The CPA
Exam Evolution is a strong indication of how the accounting profession is changing. The new CPA exam
will have more technology and data analytics questions in the Core exam, as well as the Discipline
exams.
LO 1.1, BT: K, Difficulty: Easy, TOT: 6 min, AACSB: Knowledge, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
2.
Changes Accounting Practice Area
1. Ability to use entire data sets to identify ANS: a. Auditing, c. Managerial accounting
exceptions, anomalies, and outliers
2. Automation of manual processes ANS: a., b., c., d. (All areas)
3. Automation of journal entries ANS: b. Financial accounting
4. Risk identification ANS:. a. Auditing, c. Managerial accounting
5. Forecasting ANS: b. Financial accounting, c. Managerial
accounting
6. Compliance reporting ANS: d. Tax accounting
LO 1.1, BT: C, Difficulty: Medium, TOT: 8 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
3. Data are raw facts and figures. Technology helps covert that data into information. Information is the
knowledge gained from analyzing the data.
LO 1.1, BT: C, Difficulty: Medium, TOT: 6 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
4.
Purpose Method
1. Understanding what is happening currently ANS: a. Descriptive
and what has happened in the past.
1-2
,Solution Manual for
Data and Analytics in Accounting An Integrated Approach 1e Ann C.
Dzuranin, Guido Geerts, Margarita Lenk
CHAPTER 1
DATA AND ANALYTICS IN THE ACCOUNTING
PROFESSION
Learning Objectives:
LO 1.1: Summarize how advances in data and technology are impacting accounting professionals.
LO 1.2: Describe the stages of the data analysis process.
LO 1.3: Identify the skills necessary to perform data analysis.
LO 1.4: Explain how to apply a data analytics mindset during the data analysis process.
ANSWERS TO MULTIPLE CHOICE QUESTIONS
LO 1.2, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
1. A Leverage Technology to Develop and Enhance Functional Competencies
LO 1.1, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
Leverage Technology to Develop and Enhance Functional Competencies
7. D
2. C LO 1.2, BT: C, Difficulty: Medium, TOT: 3 min, AACSB: Analytic, AICPA FC:
LO 1.1, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
Leverage Technology to Develop and Enhance Functional Competencies
8. C
3. C LO 1.2, BT: C, Difficulty: Medium, TOT: 3 min, AACSB: Analytic, AICPA FC:
LO 1.2, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
Leverage Technology to Develop and Enhance Functional Competencies
9. A
4. B LO 1.3, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
LO 1 2, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
Leverage Technology to Develop and Enhance Functional Competencies
10.D
5. B LO 1.3, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
LO 1.2, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
Leverage Technology to Develop and Enhance Functional Competencies
11.B
6. C
1-1
, LO 1.3, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
Leverage Technology to Develop and Enhance Functional Competencies
14.A
LO 1.4, BT: C, Difficulty: Medium, TOT: 3 min, AACSB: Analytic, AICPA FC:
Leverage Technology to Develop and Enhance Functional Competencies
12.A
LO 1.4, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
Leverage Technology to Develop and Enhance Functional Competencies
15.B
LO 1.4, BT: C, Difficulty: Medium, TOT: 3 min, AACSB: Analytic, AICPA FC:
Leverage Technology to Develop and Enhance Functional Competencies
13.D
LO 1.4, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
Leverage Technology to Develop and Enhance Functional Competencies
ANSWERS TO REVIEW QUESTIONS
1. Both the CPA exam and the CMA exam have added data analytic content to their exams. This is in
response to what new professionals need to know as they enter the accounting profession. The CPA
Exam Evolution is a strong indication of how the accounting profession is changing. The new CPA exam
will have more technology and data analytics questions in the Core exam, as well as the Discipline
exams.
LO 1.1, BT: K, Difficulty: Easy, TOT: 6 min, AACSB: Knowledge, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
2.
Changes Accounting Practice Area
1. Ability to use entire data sets to identify ANS: a. Auditing, c. Managerial accounting
exceptions, anomalies, and outliers
2. Automation of manual processes ANS: a., b., c., d. (All areas)
3. Automation of journal entries ANS: b. Financial accounting
4. Risk identification ANS:. a. Auditing, c. Managerial accounting
5. Forecasting ANS: b. Financial accounting, c. Managerial
accounting
6. Compliance reporting ANS: d. Tax accounting
LO 1.1, BT: C, Difficulty: Medium, TOT: 8 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
3. Data are raw facts and figures. Technology helps covert that data into information. Information is the
knowledge gained from analyzing the data.
LO 1.1, BT: C, Difficulty: Medium, TOT: 6 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
4.
Purpose Method
1. Understanding what is happening currently ANS: a. Descriptive
and what has happened in the past.
1-2
