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