Data Analytics for Accounting Vernon Richardson
1st Edition - Test Bank Chapter 3
Data Analytics for Accounting Vernon Richardson 1st Edition- Test Bank
Sample Questions
Chapter 3 Modeling and Evaluation: Going from Defining Business Problems
and Data Understanding to Analyzing Data and Answering Questions
1) Benford’s Law is an absolute and all data must conform.
Answer: FALSE
Difficulty: 1 Easy
Topic: Example of Profiling in Auditing and Continuous Auditing
Learning Objective: 03-02 Explain the profiling approach to Data Analytics.
Bloom’s: Remember
AACSB: Reflective Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology; FN Decision Making
2) A decision tree can be used to divide data into smaller groups.
Answer: TRUE
Difficulty: 1 Easy
Topic: Classification Terminology
Learning Objective: 03-03 Describe the data reduction approach to Data Analytics.
Bloom’s: Remember
AACSB: Reflective Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
,3) Data reduction is a data approach used to reduce the amount of information that
needs to be considered to focus on the most critical items.
Answer: TRUE
Difficulty: 1 Easy
Topic: Performing the Test Plan: Defining Data Analytics Approaches
Learning Objective: 03-01 Define Data Analytics Approaches.
Bloom’s: Remember
AACSB: Reflective Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
4) Regression is a data approach used to estimate or predict, for each unit, the
numerical value of some variable using some type of statistical model.
Answer: TRUE
Difficulty: 1 Easy
Topic: Performing the Test Plan: Defining Data Analytics Approaches
Learning Objective: 03-01 Define Data Analytics Approaches.
Bloom’s: Understand
AACSB: Reflective Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
,5) Link prediction is a data approach used to estimate or predict, for each unit, the
numerical value of some variable using some type of statistical model.
Answer: FALSE
Difficulty: 1 Easy
Topic: Performing the Test Plan: Defining Data Analytics Approaches
Learning Objective: 03-01 Define Data Analytics Approaches.
Bloom’s: Remember
AACSB: Reflective Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology; FN Decision Making
6) Existing data that has been manually evaluated and assigned a class is often referred
to as test data.
Answer: FALSE
Difficulty: 2 Medium
Topic: Classification Terminology
Learning Objective: 03-03 Describe the data reduction approach to Data Analytics.
Bloom’s: Understand
AACSB: Reflective Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology; FN Decision Making
7) Co-occurrence grouping could be used to match vendors by geographic region.
Answer: TRUE
, Difficulty: 1 Easy
Topic: Performing the Test Plan: Defining Data Analytics Approaches
Learning Objective: 03-01 Define Data Analytics Approaches.
Bloom’s: Remember
AACSB: Reflective Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology; FN Decision Making
8) Fuzzy matching is a data approach used to identify similar individuals based on data
known about them.
Answer: FALSE
Difficulty: 1 Easy
Topic: Performing the Test Plan: Defining Data Analytics Approaches
Learning Objective: 03-01 Define Data Analytics Approaches.
Bloom’s: Remember
AACSB: Reflective Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology; FN Decision Making
9) Alibaba and its attempt to identify seller and customer fraud based on various
characteristics known about them is an example of similarity matching.
Answer: TRUE
Difficulty: 1 Easy
Topic: Performing the Test Plan: Defining Data Analytics Approaches
1st Edition - Test Bank Chapter 3
Data Analytics for Accounting Vernon Richardson 1st Edition- Test Bank
Sample Questions
Chapter 3 Modeling and Evaluation: Going from Defining Business Problems
and Data Understanding to Analyzing Data and Answering Questions
1) Benford’s Law is an absolute and all data must conform.
Answer: FALSE
Difficulty: 1 Easy
Topic: Example of Profiling in Auditing and Continuous Auditing
Learning Objective: 03-02 Explain the profiling approach to Data Analytics.
Bloom’s: Remember
AACSB: Reflective Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology; FN Decision Making
2) A decision tree can be used to divide data into smaller groups.
Answer: TRUE
Difficulty: 1 Easy
Topic: Classification Terminology
Learning Objective: 03-03 Describe the data reduction approach to Data Analytics.
Bloom’s: Remember
AACSB: Reflective Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
,3) Data reduction is a data approach used to reduce the amount of information that
needs to be considered to focus on the most critical items.
Answer: TRUE
Difficulty: 1 Easy
Topic: Performing the Test Plan: Defining Data Analytics Approaches
Learning Objective: 03-01 Define Data Analytics Approaches.
Bloom’s: Remember
AACSB: Reflective Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
4) Regression is a data approach used to estimate or predict, for each unit, the
numerical value of some variable using some type of statistical model.
Answer: TRUE
Difficulty: 1 Easy
Topic: Performing the Test Plan: Defining Data Analytics Approaches
Learning Objective: 03-01 Define Data Analytics Approaches.
Bloom’s: Understand
AACSB: Reflective Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology
,5) Link prediction is a data approach used to estimate or predict, for each unit, the
numerical value of some variable using some type of statistical model.
Answer: FALSE
Difficulty: 1 Easy
Topic: Performing the Test Plan: Defining Data Analytics Approaches
Learning Objective: 03-01 Define Data Analytics Approaches.
Bloom’s: Remember
AACSB: Reflective Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology; FN Decision Making
6) Existing data that has been manually evaluated and assigned a class is often referred
to as test data.
Answer: FALSE
Difficulty: 2 Medium
Topic: Classification Terminology
Learning Objective: 03-03 Describe the data reduction approach to Data Analytics.
Bloom’s: Understand
AACSB: Reflective Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology; FN Decision Making
7) Co-occurrence grouping could be used to match vendors by geographic region.
Answer: TRUE
, Difficulty: 1 Easy
Topic: Performing the Test Plan: Defining Data Analytics Approaches
Learning Objective: 03-01 Define Data Analytics Approaches.
Bloom’s: Remember
AACSB: Reflective Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology; FN Decision Making
8) Fuzzy matching is a data approach used to identify similar individuals based on data
known about them.
Answer: FALSE
Difficulty: 1 Easy
Topic: Performing the Test Plan: Defining Data Analytics Approaches
Learning Objective: 03-01 Define Data Analytics Approaches.
Bloom’s: Remember
AACSB: Reflective Thinking
AICPA: BB Leveraging Technology; FN Leveraging Technology; FN Decision Making
9) Alibaba and its attempt to identify seller and customer fraud based on various
characteristics known about them is an example of similarity matching.
Answer: TRUE
Difficulty: 1 Easy
Topic: Performing the Test Plan: Defining Data Analytics Approaches
