Test Bank for Data Analytics for Accounting 3rd Edition by Rochardson and Teeter

Test Bank for Data Analytics for Accounting 3rd Edition
by Rochardson and Teeter

,ACCESS5 6 Test5 6 Bank5 6 for5 6 Data5 6 Analytics5 6 for5 6 Accounting5 6 3rd
Edition
RichardsoRichardson,56Teeter,56Terrell56–56Data
Analytics56for56Accounting,563ne
5
6

Solutions56Manual56–56Chapter561
Solutions56to56Multiple56Choice56Questions

1. (LO561-1)56Big56Data56is56often56described56by56the56four56Vs,56or

a. volume,56velocity,56veracity,56and56variability.
b. volume,56velocity,56veracity,56and56variety.
c. volume,56volatility,56veracity,56and56variability.
d. variability,56velocity,56veracity,56and56variety.

Answer:56b

2. LO561-
4)56Which56data56approach56attempts56to56assign56each56unit56in56a56population56into56a56sm
all56set56of56classes56(or56groups)56where56the56unit56best56fits?

a. Regression
b. Similarity56matching
c. Co-occurrence56grouping
d. Classification

Answer:56d

3. (LO561-
4)56Which56data56approach56attempts56to56identify56similar56individuals56based56on56data56k
nown56about56them?

a. Classification
b. Regression
c. Similarity56matching
d. Data56reduction

Answer:56c

4. (LO561-4)56Which56data56approach56attempts56to56predict56connections56between56two56data56items?56a.

Profiling

b. Classification
c. Link56prediction
d. Regression

Answer:56c

,ACCESS5 6 Test5 6 Bank5 6 for5 6 Data5 6 Analytics5 6 for5 6 Accounting5 6 3rd
Edition
RichardsoRichardson,56Teeter,56Terrell56–56Data
Analytics56for56Accounting,563ne
5
6
5. (LO561-
6)56Which56of56these56terms56is56defined56as56being56a56central56repository56of56descriptions56f
or56all56of56the56data56attributes56of56the56dataset?
a. Big56Data
b. Data56warehouse
c. Data56dictionary
d. Data56Analytics

Answer:56c

6. (LO561-5)56Which56skills56were56not56emphasized56that56analytic-minded56accountants56should56have?

a. Developed56an56analytics56mindset
b. Data56scrubbing56and56data56preparation
c. Classification56of56test56approaches
d. Statistical56data56analysis56competency

Answer:56c

7. (LO561-5)56In56which56areas56were56skills56not56emphasized56for56analytic-

minded56accountants?56a.56Data56quality

b. Descriptive56data56analysis
c. Data56visualization56and56data56reporting
d. Data56and56systems56analysis56and56design

Answer:56d

8. (LO561-4)56The56IMPACT56cycle56includes56all56except56the56following56steps:

a. perform56test56plan.
b. visualize56the56data.
c. master56the56data.
d. track56outcomes.

Answer:56b

9. (LO561-4)56The56IMPACT56cycle56specifically56includes56all56except56the56following56steps:

a. data56preparation.

b. communicate56insights.
c. address56and56refine56results.
d. perform56test56plan.

, ACCESS5 6 Test5 6 Bank5 6 for5 6 Data5 6 Analytics5 6 for5 6 Accounting5 6 3rd
Edition
RichardsoRichardson,56Teeter,56Terrell56–56Data
Analytics56for56Accounting,563ne
5
6
Answer:56a


10. LO561-
1)56By56the56year562024,56the56volume56of56data56created,56captured,56copied,56and56consum
ed56worldwide56will56be5614956 .
a. zettabytes
b. petabytes
c. exabytes
d. yottabytes

Answer:56a

Solutions56to56Discussion56and56Analysis56Questions

1. The56accounting56function56is56one56of56being56an56information56provider.5 6 To56the56extent5
6that56data56is56available56to56address56accounting56questions,56be56they56tax,56managerial,56
audit56or56financial56questions.56With56such56rich56available56data,56and56software56tools56to56
prepare56and56analyze56the56data,56data56analytics56will56continue56to56be56an56important56to
ol56for56accountants56to56use.

2. Data56analytics56is56defined56as56the56process56of56evaluating56data56with56the56purpose56
of56drawing56conclusions56to56address56business56questions.56Indeed,56effective56Data56Ana
lytics56provides56a56way56to56search56through56large56structured56and56unstructured56data5
6to56identify56unknown56patterns56or56relationships.


A56university56might56learn56from56the56analyzing56the56demographics56of56its56current56set5
6of56students56in56order56to56attract56its56future56student56recruits.56Did56they56come56from5
6cities56or56high56schools56that56were56close56by?56Were56their56parents56alumni56of56the56u
niversity?56Did56they56score56high56on56certain56parts56of56the56ACT?56Were56those56offered
56a56scholarship56more56likely56to56attend,56etc.?56Was56social56media56effective56in56attracti
ng56new,56potentially56stronger56students?56By56analyzing56this56type56of56data,56previously5
6unknown56patterns56will56emerge56that56will56make56recruiting56students56more56effective.


3. There56are56many56potential56answers.5 6 For56example,56Monsanto56may56use56mathematical
56and56statistical56models56to56plot56out56the56best56times56to56plant56both56male56and56fem
ale56plants56and56where56to56plant56them56to56maximize56yield.56(https://www.cio.com/article
/3221621/analytics/6-dataanalytics-56success-stories-an-inside-look.html#tk.cio_rs)

4. There56are56many56potential56answers.56Data56analytics56gives56both56internal56and56externa
l56auditors56additional56tools56to56examine56every56accounting56transaction56and56assess56for
56compliance56with56GAAP.56The56audit56process56is56changing56from56a56traditional56process
56toward56a56more56automated56one,56which56will56allow56audit56professionals56to56focus56
more56on56the56logic56and56rationale56behind56data56queries56and56less56on56the56gathering5
6of56the56actual56data.56No56longer56will56they56be56simply56checking56for56errors,56material5
6misstatements,56fraud,56and56risk56in56financial56statements56or56merely56be56reporting56th
eir56findings56at56the56end56of56the56engagement.56Instead,56audit56professionals56will56now5
6be56collecting56and56analyzing56the56company’s56data56similar56to56the56way56a56business56
analyst56would56help56management56make56better56business56decisions.5 6 In56this56way,56da
ta56analytics56offers56value56to56the56audit56function.