Data Analytics for Accounting 3rd Edition by Vernon Richardson Test Bank |ISBN: 9781265094454| Guide A+

TEST BANK
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TEST BANK

,Richardson: Data Analytics for Accounting, 3rd Edition


Answers are at the End of Each Chapter

Chapter 01:
Student name:
1) Data analytics is the process of evaluating data with the purpose of drawing conclusions to
address business questions.
⊚ true
⊚ false
SO

2) The process of data analytics aims to transform raw information into data to create value.
⊚ true
⊚ false
LU

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.
⊚ true
TI
⊚ false
O
4) Auditors can use social media to hear what customers are saying about a company and
compare this to inventory obsolescence and other estimates.
⊚ true
N
⊚ false
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5) Data analytics allows auditors to glean insights that are beneficial to the client, without
breeching independence.
⊚ true
⊚ false

,6) The predictive analytics is an important aspect of data analytics for auditors, but is not
applicable for tax accountants.
⊚ true
⊚ false



7) The I in IMPACT Cycle represents Identify the Question.
⊚ true
⊚ false



8) The M in IMPACT Cycle represents Master the Data.
SO
⊚ true
⊚ false



9) The P in IMPACT Cycle represents Predict the Results.
LU
⊚ true
⊚ false



10) The A in IMPACT Cycle represents Analyze the Data.
TI
⊚ true
⊚ false
O

11) The C in IMPACT Cycle represents Continuously Track.
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N
⊚ false
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12) The T in IMPACT Cycle represents Track Outcomes.
⊚ true
⊚ false

, 13) The IMPACT cycle is iterative, as insights are gained, outcomes are tracked, and new
questions are identified.
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⊚ false



14) Data analysis through data manipulation is performing basic analysis to understand the
quality of the underlying data and its ability to address the business question.
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⊚ false
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15) To be proficient in data analysis, accountants need to become data scientists.
⊚ true
⊚ false
LU
16) By developing an analytics mindset, accountants will be able to recognize when and how
data analytics can address business questions.
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⊚ false
TI

17) While it is important for accountants to clearly articulate the business problem, drawing
appropriate conclusions, based on the data, should be left to statisticians.
O
⊚ true
⊚ false
N

18) Analytic-minded accountants should report results of analysis in an accessible way to each
S
varied decision maker and their specific needs.
⊚ true
⊚ false