A PACKAGE DEAL FOR WGU D204 DATA ANALYTICS EXAM
DIFFERENT VERSIONS WITH DETAILED VERIFIED SOLUTIONS
/A+ GRADE ASSURED
Define Data Analytics (DA) - ANSWER: Data Analytics is the process of evaluating
data with the purpose of drawing conclusions to address business questions.
Effective Data Analytics provides a way to search through large structured and
unstructured data to identify unknown patterns or relationships.
Define Big Data and what are the 3 Vs - ANSWER: Big Data refers to datasets which
are too large and complex to be analyzed traditionally.
Remember the 3V 's:
Volume refers to size
Velocity refers to frequency
Variety refers to different types
What is the difference between Data Analytics and Big Data? - ANSWER: Big data is
what data analytics is trying to evaluate and deal with.
What are some types of information that Data Analytics can help companies
discover? - ANSWER: No longer will they be simply checking for errors, material
misstatements, fraud, and risk in financial statements or merely be reporting their
findings at the end of the engagement. Instead, audit professionals will now be
collecting and analyzing the company's data similar to the way a business analyst
would to help management make better business decisions. This means that, in
many cases, external auditors will stay engaged with clients beyond the audit. This is
a significant paradigm shift. The audit process will be changed from a traditional
process toward a more automated one, which will allow audit professionals to focus
more on the logic and rationale behind data queries and less on the gathering of the
actual data.8 As a result, audits will not only yield important findings from a financial
perspective, but also information that can help companies refine processes, improve
efficiency, and anticipate future problems.
There is a movement toward leveraging advanced business analytic techniques to
refine the focus on ______________ and derive deeper insights into
_________________. - ANSWER: focus on risk ; derive deeper into an organization
Given that operational data are more relevant and accessible, accounting firms will
approach audits differently. How? - ANSWER: Data Analytics may also allow an
accountant or auditor to assess the probability of a goodwill write-down, warranty
claims or the collectability of bad debts based on what customers, investors, and
other stakeholders are saying about the company in blogs and in social media (like
Facebook and Twitter). This information might help the firm determine both its
optimal response to the situation and appropriate adjustment to its financial
reporting.
, What are some examples where DA can help improve the quality of estimates and
valuations? - ANSWER: Better estimates of collectability, write-downs, etc.
Managers can better understand the business environment through social media
Identify risks and opportunities through analysis of Internet searches
Scanning ______________ ______________ may result in information about
potential risks or opportunities related to the industry in which the firm operates as
well as its competitors - ANSWER: the internet
What is one way that DA can help tax accountants? - ANSWER: Tax strategy and
planning
Understanding of tax consequences of international transactions, investment,
mergers and acquisitions
Better organization of tax tables and other tax data.
Now, however, tax executives must develop sophisticated tax planning capabilities
that assist the company with minimizing its taxes in such a way to avoid or prepare
for a potential audit. This shift in focus makes tax data analytics valuable for its
ability to help tax staffs to predict what will happen rather than reacting to what just
did happen. Arguably, one of the things that Data Analytics does best is predictive
analytics—predicting the future! An example of how tax data analytics might be used
is the capability to predict the potential tax consequences of a potential
international transaction, R&D investment, or proposed merger or acquisition.
Briefly list and describe the six steps in the IMPACT cycle. - ANSWER: 1.Identify the
questions. Understand the business problems that need to be addressed.
•Are employees circumventing internal controls over payments?
•Are there any suspicious travel and entertainment expenses?
•How can we increase the amount of add-on sales of additional goods to our
customers? Are our customers paying us in a timely manner?
•How can we predict the allowance for loan losses for our bank loans?
•How can we find transactions that are risky in terms of accounting issues?
•Who authorizes checks above $100,000? How can errors be identified?
2.Master the data
Know what data are available and how they relate to the problem.
•Internal ERP systems
•External networks and data warehouses
•Data dictionaries
•Extraction, transformation, and loading
•Data validation and completeness
•Data normalization
•Data preparation and scrubbing
3.Perform the test plan
Select an appropriate model to find a target variable.
•Classification
•Regression
•Similarity matching
DIFFERENT VERSIONS WITH DETAILED VERIFIED SOLUTIONS
/A+ GRADE ASSURED
Define Data Analytics (DA) - ANSWER: Data Analytics is the process of evaluating
data with the purpose of drawing conclusions to address business questions.
Effective Data Analytics provides a way to search through large structured and
unstructured data to identify unknown patterns or relationships.
Define Big Data and what are the 3 Vs - ANSWER: Big Data refers to datasets which
are too large and complex to be analyzed traditionally.
Remember the 3V 's:
Volume refers to size
Velocity refers to frequency
Variety refers to different types
What is the difference between Data Analytics and Big Data? - ANSWER: Big data is
what data analytics is trying to evaluate and deal with.
What are some types of information that Data Analytics can help companies
discover? - ANSWER: No longer will they be simply checking for errors, material
misstatements, fraud, and risk in financial statements or merely be reporting their
findings at the end of the engagement. Instead, audit professionals will now be
collecting and analyzing the company's data similar to the way a business analyst
would to help management make better business decisions. This means that, in
many cases, external auditors will stay engaged with clients beyond the audit. This is
a significant paradigm shift. The audit process will be changed from a traditional
process toward a more automated one, which will allow audit professionals to focus
more on the logic and rationale behind data queries and less on the gathering of the
actual data.8 As a result, audits will not only yield important findings from a financial
perspective, but also information that can help companies refine processes, improve
efficiency, and anticipate future problems.
There is a movement toward leveraging advanced business analytic techniques to
refine the focus on ______________ and derive deeper insights into
_________________. - ANSWER: focus on risk ; derive deeper into an organization
Given that operational data are more relevant and accessible, accounting firms will
approach audits differently. How? - ANSWER: Data Analytics may also allow an
accountant or auditor to assess the probability of a goodwill write-down, warranty
claims or the collectability of bad debts based on what customers, investors, and
other stakeholders are saying about the company in blogs and in social media (like
Facebook and Twitter). This information might help the firm determine both its
optimal response to the situation and appropriate adjustment to its financial
reporting.
, What are some examples where DA can help improve the quality of estimates and
valuations? - ANSWER: Better estimates of collectability, write-downs, etc.
Managers can better understand the business environment through social media
Identify risks and opportunities through analysis of Internet searches
Scanning ______________ ______________ may result in information about
potential risks or opportunities related to the industry in which the firm operates as
well as its competitors - ANSWER: the internet
What is one way that DA can help tax accountants? - ANSWER: Tax strategy and
planning
Understanding of tax consequences of international transactions, investment,
mergers and acquisitions
Better organization of tax tables and other tax data.
Now, however, tax executives must develop sophisticated tax planning capabilities
that assist the company with minimizing its taxes in such a way to avoid or prepare
for a potential audit. This shift in focus makes tax data analytics valuable for its
ability to help tax staffs to predict what will happen rather than reacting to what just
did happen. Arguably, one of the things that Data Analytics does best is predictive
analytics—predicting the future! An example of how tax data analytics might be used
is the capability to predict the potential tax consequences of a potential
international transaction, R&D investment, or proposed merger or acquisition.
Briefly list and describe the six steps in the IMPACT cycle. - ANSWER: 1.Identify the
questions. Understand the business problems that need to be addressed.
•Are employees circumventing internal controls over payments?
•Are there any suspicious travel and entertainment expenses?
•How can we increase the amount of add-on sales of additional goods to our
customers? Are our customers paying us in a timely manner?
•How can we predict the allowance for loan losses for our bank loans?
•How can we find transactions that are risky in terms of accounting issues?
•Who authorizes checks above $100,000? How can errors be identified?
2.Master the data
Know what data are available and how they relate to the problem.
•Internal ERP systems
•External networks and data warehouses
•Data dictionaries
•Extraction, transformation, and loading
•Data validation and completeness
•Data normalization
•Data preparation and scrubbing
3.Perform the test plan
Select an appropriate model to find a target variable.
•Classification
•Regression
•Similarity matching
