SOLUTION MANUAL For Data Analytics for Accounting, 3rd
Edition by Vernon Richardson, Verified Chapters 1 - 9,
Complete Newest Version
Data Analytics - ANSWER: the process of evaluation data with the purpose of
drawing conclusions to address business questions
Big Data - ANSWER: refers to datasets which are too large and complex to be
analyzed traditionally
3 V's - ANSWER: volume, velocity, and variety
How does data analytics affect auditing? - ANSWER: - enhances audit quality
- enables enhanced audits, expanded services, and added value to clients
- external auditors stay engaged beyond the audit
How does data analytics managerial accounting? - ANSWER: - measuring past
performance and comparing it to targeting goals
- can determine required adjustments to how decisions are made and/or how
business processes are run
How does data analytics affect financial reporting? - ANSWER: - accountants make
better estimates of collectability
- mangers better understand the business environment through social media
- identity risks and opportunities through analysis of internet searches
How does data analytics affect tax? - ANSWER: - companies develop sophisticated
tax planning strategies
- managers understand tax consequences of international transactions, investment,
mergers, and acquisitions
- organization understand tax tables and other tax data to aid compliance
IMPACT Model - ANSWER: 1. Identify the questions
2. Master the data
3. Perform the test plan
4. Address and refine results
5. Communicate insights
6. Track outcomes
Step 1 of IMPACT - ANSWER: 1) Identify the questions
- understand the business problems that need to be addressed
Step 2 of IMPACT - ANSWER: 2) Master the data
- know what data are available and how they relate to the problem
, Step 3 of IMPACT - ANSWER: 3) Perform the test plan
- select an appropriate model to find a target variable
Step 4 of IMPACT - ANSWER: 4) Address and Refine results
- identify issues with the analyses, possible issues, and refine the model
Step 5 of IMPACT - ANSWER: 5) Communicate insights
- communicate effectively using clear language and visualizations
Step 6 of IMPACT - ANSWER: 6) Track Outcomes
- follow up on the results of the analysis
Accountants need to be able to... - ANSWER: - articulate business problem
- communicate with data scientists
- draw appropriate conclusions
- present results in an accessible manner
- develop an analytics mindset
Accountant skills that are needed.. - ANSWER: - data scrubbing and data preparation
- data quality
- descriptive data analysis
- data analysis through data manipulation
- define and address problems through statistical analysis
- data visualizations and data reporting
Relational databases ensure that data... - ANSWER: - are complete
- aren't redundant
- follow business rules
- aid communication
Primary keys - ANSWER: are unique identifiers
Foreign keys - ANSWER: are attributes that point to a primary key in another table
Composite keys - ANSWER: a combination of two foreign keys used for line items
Descriptive attrbutes - ANSWER: include everything else
Data Dictionaries define - ANSWER: what data are acceptable
- what type of key it is
- what data re required
- what data can be stored in it
- how much data is stored
Requesting data is a 5 step process - ANSWER: 1. Determine the purpose and scope
of the data request
Edition by Vernon Richardson, Verified Chapters 1 - 9,
Complete Newest Version
Data Analytics - ANSWER: the process of evaluation data with the purpose of
drawing conclusions to address business questions
Big Data - ANSWER: refers to datasets which are too large and complex to be
analyzed traditionally
3 V's - ANSWER: volume, velocity, and variety
How does data analytics affect auditing? - ANSWER: - enhances audit quality
- enables enhanced audits, expanded services, and added value to clients
- external auditors stay engaged beyond the audit
How does data analytics managerial accounting? - ANSWER: - measuring past
performance and comparing it to targeting goals
- can determine required adjustments to how decisions are made and/or how
business processes are run
How does data analytics affect financial reporting? - ANSWER: - accountants make
better estimates of collectability
- mangers better understand the business environment through social media
- identity risks and opportunities through analysis of internet searches
How does data analytics affect tax? - ANSWER: - companies develop sophisticated
tax planning strategies
- managers understand tax consequences of international transactions, investment,
mergers, and acquisitions
- organization understand tax tables and other tax data to aid compliance
IMPACT Model - ANSWER: 1. Identify the questions
2. Master the data
3. Perform the test plan
4. Address and refine results
5. Communicate insights
6. Track outcomes
Step 1 of IMPACT - ANSWER: 1) Identify the questions
- understand the business problems that need to be addressed
Step 2 of IMPACT - ANSWER: 2) Master the data
- know what data are available and how they relate to the problem
, Step 3 of IMPACT - ANSWER: 3) Perform the test plan
- select an appropriate model to find a target variable
Step 4 of IMPACT - ANSWER: 4) Address and Refine results
- identify issues with the analyses, possible issues, and refine the model
Step 5 of IMPACT - ANSWER: 5) Communicate insights
- communicate effectively using clear language and visualizations
Step 6 of IMPACT - ANSWER: 6) Track Outcomes
- follow up on the results of the analysis
Accountants need to be able to... - ANSWER: - articulate business problem
- communicate with data scientists
- draw appropriate conclusions
- present results in an accessible manner
- develop an analytics mindset
Accountant skills that are needed.. - ANSWER: - data scrubbing and data preparation
- data quality
- descriptive data analysis
- data analysis through data manipulation
- define and address problems through statistical analysis
- data visualizations and data reporting
Relational databases ensure that data... - ANSWER: - are complete
- aren't redundant
- follow business rules
- aid communication
Primary keys - ANSWER: are unique identifiers
Foreign keys - ANSWER: are attributes that point to a primary key in another table
Composite keys - ANSWER: a combination of two foreign keys used for line items
Descriptive attrbutes - ANSWER: include everything else
Data Dictionaries define - ANSWER: what data are acceptable
- what type of key it is
- what data re required
- what data can be stored in it
- how much data is stored
Requesting data is a 5 step process - ANSWER: 1. Determine the purpose and scope
of the data request
