,Solution manual For Data and Analytics in
Accounting, 1e Dzuranin
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, CHAPTER 1
DATA AND ANALYTICS IN THE ACCOUNTING
PROFESSION
Learning Objectives:
LO 1.1: Summarize how advances in data and technology are impacting accounting professionals.
LO 1.2: Describe the stages of the data analysis process.
LO 1.3: Identify the skills necessary to perform data analysis.
LO 1.4: Explain how to apply a data analytics mindset during the data analysis process.
ANSWERS TO MULTIPLE CHOICE QUESTIONS
1. A 9. A
LO 1.1, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC: LO 1.3, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
Leverage Technology to Develop and Enhance Functional Competencies Leverage Technology to Develop and Enhance Functional Competencies
2. C
LO 1.1, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
10.D
Leverage Technology to Develop and Enhance Functional Competencies LO 1.3, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
Leverage Technology to Develop and Enhance Functional Competencies
3. C
LO 1.2, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
11.B
Leverage Technology to Develop and Enhance Functional Competencies LO 1.3, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
Leverage Technology to Develop and Enhance Functional Competencies
4. B
LO 1 2, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
12.A
Leverage Technology to Develop and Enhance Functional Competencies LO 1.4, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
Leverage Technology to Develop and Enhance Functional Competencies
5. B
LO 1.2, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
13.D
Leverage Technology to Develop and Enhance Functional Competencies LO 1.4, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
Leverage Technology to Develop and Enhance Functional Competencies
6. C
LO 1.2, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
14.A
Leverage Technology to Develop and Enhance Functional Competencies LO 1.4, BT: C, Difficulty: Medium, TOT: 3 min, AACSB: Analytic, AICPA FC:
Leverage Technology to Develop and Enhance Functional Competencies
7. D
LO 1.2, BT: C, Difficulty: Medium, TOT: 3 min, AACSB: Analytic, AICPA FC:
15.B
Leverage Technology to Develop and Enhance Functional Competencies LO 1.4, BT: C, Difficulty: Medium, TOT: 3 min, AACSB: Analytic, AICPA FC:
Leverage Technology to Develop and Enhance Functional Competencies
8. C
LO 1.2, BT: C, Difficulty: Medium, TOT: 3 min, AACSB: Analytic, AICPA FC:
Leverage Technology to Develop and Enhance Functional Competencies
1-1
, ANSWERS TO REVIEW QUESTIONS
1. Both the CPA exam and the CMA exam have added data analytic content to their exams. This is in
response to what new professionals need to know as they enter the accounting profession. The CPA
Exam Evolution is a strong indication of how the accounting profession is changing. The new CPA exam
will have more technology and data analytics questions in the Core exam, as well as the Discipline
exams.
LO 1.1, BT: K, Difficulty: Easy, TOT: 6 min, AACSB: Knowledge, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
2.
Changes Accounting Practice Area
1. Ability to use entire data sets to identify ANS: a. Auditing, c. Managerial accounting
exceptions, anomalies, and outliers
2. Automation of manual processes ANS: a., b., c., d. (All areas)
3. Automation of journal entries ANS: b. Financial accounting
4. Risk identification ANS:. a. Auditing, c. Managerial accounting
5. Forecasting ANS: b. Financial accounting, c. Managerial
accounting
6. Compliance reporting ANS: d. Tax accounting
LO 1.1, BT: C, Difficulty: Medium, TOT: 8 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
3. Data are raw facts and figures. Technology helps covert that data into information. Information is the
knowledge gained from analyzing the data.
LO 1.1, BT: C, Difficulty: Medium, TOT: 6 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
4.
Purpose Method
1. Understanding what is happening currently ANS: a. Descriptive
and what has happened in the past.
2. Understanding what should happen to meet ANS: d. Prescriptive
our goals and objectives.
3. Understanding what might happen in the ANS: c. Prescriptive
future.
4. Understanding why something happened. ANS: b. Diagnostic
LO 1.2, BT: C, Difficulty: Medium, TOT: 6 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
1-2
,5. The first step is to identify the motivation for the analysis. The motivation for a project is the why the
analysis is being performed. It is important to understand the reason for the analysis before beginning
the analysis.
The second step is to set an objective. In other words, “What is the goal of the analysis?” This step will
help articulate the goal and specific questions that will be analyzed.
The third step is to develop a strategy. In this step, we determine the data and analysis methods
necessary to achieve the project’s goal.
LO 1.2, BT: K, Difficulty: Easy, TOT: 8 min, AACSB: Knowledge, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
6. Extracting is the process in which data is retrieved from a source. This could involve downloading an
Excel file or extracting data from a database or a data warehouse.
Transforming the data occurs when data is cleaned, restructured, and/or integrated prior to using it for
analysis.
Loading data is the process of importing transformed data into the software used to perform analyses.
LO 1.2, BT: K, Difficulty: Easy, TOT: 8 min, AACSB: Knowledge, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
7.
Example Data Analysis Process Stage
1. Develop a model to calculate contribution ANS: b. Analyze
margin.
2. Get data from a database. ANS: b. Analyze
3. Upload data into analysis software. ANS:b. Analyze
4. Determine the objective of the analysis. ANS: a. Plan
5. Create a forecast of net income. ANS: b. Analyze
6. Identify the data needed for analysis. ANS: a. Plan
7. Identify relationships within the data. ANS: b. Analyze
8. Create a visualization to show the results of ANS: c. Report
the analyses.
9. Identify sales patterns. ANS: b. Analyze
LO 1.2, BT: C, Difficulty: Medium, TOT: 12 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
8. A data analytics mindset is the habit critically thinking through the planning, analysis, and
interpretation of data results before making and communicating a professional choice or
decision. Individuals with a data analytics mindset are inquisitive. They always ask “why” when
interpreting results, are open to learning new technologies, and take the time to evaluate their own
thinking.
LO 1.3, BT: C, Difficulty: Medium, TOT: 6min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
1-3
,9. The ability to communicate well is important in all areas of accounting. In data analytics it is
important to have good communication skills to explain the results of analyses so others can understand
and act if needed.
LO 1.3, BT: C, Difficulty: Medium, TOT: 6min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
10.
Definition Skill
1. Willingness to try new technology. ANS: c. Technological agility
2. The ability to read, write, and communicate ANS: b. Data literacy
data in context.
3. Ability to create effective data visualizations ANS: d. Communication
4. Disciplined reasoning used to investigate, ANS: a. Critical thinking
understand, and evaluate an event, opportunity,
or an issue.
LO1. 3, BT: K, Difficulty: Easy, TOT: 8min, AACSB: Knowledge, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies.
11.
• Stakeholders: Understand the internal and external parties impacted by the data analysis
results.
• Purpose: Determine the reason for the analysis.
• Alternatives: Evaluate and rank all potential data and analysis choices during the data analysis
process.
• Risks: Consider risks to the data and the analysis choices, including assumptions and potential
biases.
• Knowledge: Identify and acquiring the knowledge necessary to properly prepare and interpret
the analyses.
• Self-reflection: Review decisions and processes for lessons learned and apply them to future
projects.
LO 1. 4, BT: C, Difficulty: Medium, TOT: 10min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
12. Student answers will vary. General examples follow.
• Motivation: All elements of critical thinking can be applied. For example, it is important to
identify the stakeholders so that their motivations are understood. Understanding those
motivations allows a better understanding of why the analysis is being performed.
• Objective: All elements of critical thinking can be applied. For example, staying focused on the
purpose of the analysis will make identifying relevant questions easier.
• Strategy: All elements of critical thinking can be applied. For example, consider alternatives for
data analysis and then choose the best data analysis method.
LO 1.4, BT: AP, Difficulty: Hard, TOT: 16 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
1-4
,13. Student answers will vary. General examples follow.
• Prepare data: All elements of critical thinking can be applied. For example, be aware of risks
when preparing data. Risks include incomplete or inaccurate data. Incomplete or inaccurate
data will result in incorrect analyses.
• Build information models: All elements of critical thinking can be applied. For example, it may
be necessary to consider alternative models and/or alternative data for our models. By
considering alternatives, we can feel more confident that we have chosen the best model.
• Explore data: All elements of critical thinking can be applied. For example, maintaining focus on
the project’s purpose will help avoid wasting time exploring the data for irrelevant questions.
Staying focused on the purpose of the analysis makes us more efficient.
LO 1.4, BT: AP, Difficulty: Hard, TOT: 14 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
14. Student answers will vary. General examples follow.
• Interpret results: All elements of critical thinking can be applied. For example, it is necessary to
identify the knowledge that is needed to understand the analysis before we interpret it. When
that knowledge is identified, we are better prepared to interpret the analysis results.
• Communicate results: All elements of critical thinking can be applied. For example, when
preparing to communicate results, it helps to consider the stakeholders who will receive the
communication. Understanding the stakeholders let’s us better identifythe audience and
structure the presentation of results based on the information they need to know.
LO 1.4, BT: AP, Difficulty: Hard, TOT: 14 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
SOLUTIONS TO BRIEF EXERCISES
BE 1.1
1. This analysis can be used to identify sales patterns and to help detect unusual sales. If unusual
patterns or sales are identified, the auditor can do further testing.
2. The months of August – November look low compared to prior months. December looks high. It
would also be helpful to compare this pattern to the prior year to identify any similarities.
LO 1.1, BT: AN, Difficulty: Easy, TOT: 8 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies, H2: Analytics an d
Accounting Professional Practice
BE 1.2
1-5
,1. Total Sales = $2,760,509,187.74
Total Costs = $1,964,399,918.41
Total Profit = $796,109,269.33
2. The data has information from 2022 to 2025. A financial dashboard can include tabs for each of the
years, quarters, and months that will allow the user to select the period they are most interested in. The
data can be displayed on the dashboard for each of the measures.
3. A visualization showing revenue and expenses can be added. Also, a table with the financial
information summary can be added. Data related to assets and liabilities would be useful as well.
Finally, a comparison of prior year to current year profit in a visualization would be useful.
LO 1.1, BT: AN, Difficulty: Medium, TOT: 8 min, AACSB: Data Analytics, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
BE 1.3
1. Descriptive
2. Diagnostic
3. Predictive
4. Descriptive
LO 1.2, BT: AP, Difficulty: Easy, TOT: 3 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
BE 1.4 Student answers will vary.
1. Financial data: Forecasted sales of scooters in Canada. Estimated costs for the expansion. Sales and
expenses for the U.S. operations to be used to estimate expense for the Canada expansion.
Non-financial data: Competitor market share. Population of major cities where scooters are used.
Weather data. Foreign exchange rates.
2. The financial data listed is internal data. The non-financial data is external.
LO 1.2, BT: C, Difficulty: Medium, TOT: 5 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
BE 1.5
1. The analysis is being performed to investigate profit margin by customer.
2. The goal is to identify if there are any customers that are below the target profit margin.
3. Perform an analysis that shows profit margin by customer and highlight the customers that are below
42% profit margin.
LO 1 2, BT: AP, Difficulty: Medium, TOT: 5 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
1-6
,BE 1.6
1. It would be easier to see if the products were grouped, and then each bar was a different year. That
way it would be easier to identify if a product is increasing or decreasing. However, we can still see that
in this visual, just not as easily. Blueberry scones seems to have decreased from 2022 to 2023, and then
increased in 2024 and decreased in 2025. All products decreased from 2022 to 2023. All products
except cinnamon buns increased in 2024. In 2025, poppyseed bagels increased the most.
2. The interpretation can be communicated orally, in writing, or visually. To communicate visually,
create a visual with groupings by product as discussed in answer 1.
LO 1.2, BT: AP, Difficulty: Medium, TOT: 5 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
BE 1.7 Guide students to the websites for accounting firms or job posting websites such as Indeed.com
or Robert Half Accounting. Student answers will vary.
Qualifications:
• Expert knowledge of general financial accounting and cost accounting.
• Understanding of and ability to adhere to generally accepted accounting principles.
• Proficient with accounting software.
• Excellent organizational skills and attention to detail.
• Excellent written and verbal communication skills.
• Proficient in Microsoft Office Suite or similar software.
• Bachelor’s degree in accounting.
Responsibilities:
• The accountant/auditor will inspect and review, but may also prepare and report, financial
transactions and budgetary controls for assigned funds and departments.
• Examines assigned financial records and statements for accuracy.
• Analyzes financial data, making recommendations as appropriate to improve accuracy,
efficiency, and to reduce costs.
• Inspects the budget and general ledger for assigned departments and accounts, ensuring that
funds are available, and expenditures are assigned correctly.
• Reviews and/or assists with preparation of financial statements and records provided to federal,
state, and internal auditors and similar personnel.
• As needed, assists with accounting duties for and corrections to listed financial records.
• As appropriate, identifies and recommends updates to accounting systems and procedures.
LO 3, BT: S, Difficulty: Medium, TOT: 10 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
BE 1.8
1-7
, Guide students to the websites for accounting firms or job posting websites such as Accounting Jobs
Today.com, Indeed.com, or Robert Half Accounting. Student answers will vary.
Qualifications:
• Ideal applicants will have proficient knowledge of accounting and tax principles.
• Bachelors or master’s degree in accounting.
• CPA license, eligibility to sit for the CPA exam or working toward obtaining license.
• Strong organizational, communication and interpersonal skills.
• Customer service skills.
• Ability to work independently.
• Ability to analyze complex matters.
• Enthusiasm for work and eagerness to learn.
Responsibilities:
• Preparation of income tax returns for individual, business, and fiduciary clients.
• Consulting engagements.
• Direct correspondence with clients.
• Direct correspondence with federal and state authorities.
• Work effectively with team members.
LO 1.3, BT: S, Difficulty: Medium, TOT: 10 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
BE 1.9 Guide students to the websites for accounting firms or job posting websites such as Accounting
Jobs Today.com, Indeed.com, or Robert Half Accounting. Student answers will vary.
Qualifications:
• Strong and analytical ability; accuracy with numbers; and extreme attention to detail.
• Excellent computer skills using excel and Google suite.
• Experience with basic accounting software.
• Strong oral and written English communication skills.
• Communication skills must be effective and courteous requiring high integrity when dealing with
restricted and/or highly confidential information.
• Ability to establish effective working relationships with employees at all levels of the
organization.
• Ability to work diplomatically with others to discuss and resolve transactional issues as well as
discussion of policies and workflow.
• Experience with Great Plains accounting software.
Responsibilities:
• Support assigned accounts payable functions that include following procurement policy through
payment of invoices.
1-8
Accounting, 1e Dzuranin
Hello all ,
We have all what you need with best price
Our email :
Our website :
testbanks-store.com
, CHAPTER 1
DATA AND ANALYTICS IN THE ACCOUNTING
PROFESSION
Learning Objectives:
LO 1.1: Summarize how advances in data and technology are impacting accounting professionals.
LO 1.2: Describe the stages of the data analysis process.
LO 1.3: Identify the skills necessary to perform data analysis.
LO 1.4: Explain how to apply a data analytics mindset during the data analysis process.
ANSWERS TO MULTIPLE CHOICE QUESTIONS
1. A 9. A
LO 1.1, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC: LO 1.3, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
Leverage Technology to Develop and Enhance Functional Competencies Leverage Technology to Develop and Enhance Functional Competencies
2. C
LO 1.1, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
10.D
Leverage Technology to Develop and Enhance Functional Competencies LO 1.3, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
Leverage Technology to Develop and Enhance Functional Competencies
3. C
LO 1.2, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
11.B
Leverage Technology to Develop and Enhance Functional Competencies LO 1.3, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
Leverage Technology to Develop and Enhance Functional Competencies
4. B
LO 1 2, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
12.A
Leverage Technology to Develop and Enhance Functional Competencies LO 1.4, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
Leverage Technology to Develop and Enhance Functional Competencies
5. B
LO 1.2, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
13.D
Leverage Technology to Develop and Enhance Functional Competencies LO 1.4, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
Leverage Technology to Develop and Enhance Functional Competencies
6. C
LO 1.2, BT: K, Difficulty: Easy, TOT: 2 min, AACSB: Knowledge, AICPA FC:
14.A
Leverage Technology to Develop and Enhance Functional Competencies LO 1.4, BT: C, Difficulty: Medium, TOT: 3 min, AACSB: Analytic, AICPA FC:
Leverage Technology to Develop and Enhance Functional Competencies
7. D
LO 1.2, BT: C, Difficulty: Medium, TOT: 3 min, AACSB: Analytic, AICPA FC:
15.B
Leverage Technology to Develop and Enhance Functional Competencies LO 1.4, BT: C, Difficulty: Medium, TOT: 3 min, AACSB: Analytic, AICPA FC:
Leverage Technology to Develop and Enhance Functional Competencies
8. C
LO 1.2, BT: C, Difficulty: Medium, TOT: 3 min, AACSB: Analytic, AICPA FC:
Leverage Technology to Develop and Enhance Functional Competencies
1-1
, ANSWERS TO REVIEW QUESTIONS
1. Both the CPA exam and the CMA exam have added data analytic content to their exams. This is in
response to what new professionals need to know as they enter the accounting profession. The CPA
Exam Evolution is a strong indication of how the accounting profession is changing. The new CPA exam
will have more technology and data analytics questions in the Core exam, as well as the Discipline
exams.
LO 1.1, BT: K, Difficulty: Easy, TOT: 6 min, AACSB: Knowledge, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
2.
Changes Accounting Practice Area
1. Ability to use entire data sets to identify ANS: a. Auditing, c. Managerial accounting
exceptions, anomalies, and outliers
2. Automation of manual processes ANS: a., b., c., d. (All areas)
3. Automation of journal entries ANS: b. Financial accounting
4. Risk identification ANS:. a. Auditing, c. Managerial accounting
5. Forecasting ANS: b. Financial accounting, c. Managerial
accounting
6. Compliance reporting ANS: d. Tax accounting
LO 1.1, BT: C, Difficulty: Medium, TOT: 8 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
3. Data are raw facts and figures. Technology helps covert that data into information. Information is the
knowledge gained from analyzing the data.
LO 1.1, BT: C, Difficulty: Medium, TOT: 6 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
4.
Purpose Method
1. Understanding what is happening currently ANS: a. Descriptive
and what has happened in the past.
2. Understanding what should happen to meet ANS: d. Prescriptive
our goals and objectives.
3. Understanding what might happen in the ANS: c. Prescriptive
future.
4. Understanding why something happened. ANS: b. Diagnostic
LO 1.2, BT: C, Difficulty: Medium, TOT: 6 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
1-2
,5. The first step is to identify the motivation for the analysis. The motivation for a project is the why the
analysis is being performed. It is important to understand the reason for the analysis before beginning
the analysis.
The second step is to set an objective. In other words, “What is the goal of the analysis?” This step will
help articulate the goal and specific questions that will be analyzed.
The third step is to develop a strategy. In this step, we determine the data and analysis methods
necessary to achieve the project’s goal.
LO 1.2, BT: K, Difficulty: Easy, TOT: 8 min, AACSB: Knowledge, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
6. Extracting is the process in which data is retrieved from a source. This could involve downloading an
Excel file or extracting data from a database or a data warehouse.
Transforming the data occurs when data is cleaned, restructured, and/or integrated prior to using it for
analysis.
Loading data is the process of importing transformed data into the software used to perform analyses.
LO 1.2, BT: K, Difficulty: Easy, TOT: 8 min, AACSB: Knowledge, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
7.
Example Data Analysis Process Stage
1. Develop a model to calculate contribution ANS: b. Analyze
margin.
2. Get data from a database. ANS: b. Analyze
3. Upload data into analysis software. ANS:b. Analyze
4. Determine the objective of the analysis. ANS: a. Plan
5. Create a forecast of net income. ANS: b. Analyze
6. Identify the data needed for analysis. ANS: a. Plan
7. Identify relationships within the data. ANS: b. Analyze
8. Create a visualization to show the results of ANS: c. Report
the analyses.
9. Identify sales patterns. ANS: b. Analyze
LO 1.2, BT: C, Difficulty: Medium, TOT: 12 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
8. A data analytics mindset is the habit critically thinking through the planning, analysis, and
interpretation of data results before making and communicating a professional choice or
decision. Individuals with a data analytics mindset are inquisitive. They always ask “why” when
interpreting results, are open to learning new technologies, and take the time to evaluate their own
thinking.
LO 1.3, BT: C, Difficulty: Medium, TOT: 6min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
1-3
,9. The ability to communicate well is important in all areas of accounting. In data analytics it is
important to have good communication skills to explain the results of analyses so others can understand
and act if needed.
LO 1.3, BT: C, Difficulty: Medium, TOT: 6min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
10.
Definition Skill
1. Willingness to try new technology. ANS: c. Technological agility
2. The ability to read, write, and communicate ANS: b. Data literacy
data in context.
3. Ability to create effective data visualizations ANS: d. Communication
4. Disciplined reasoning used to investigate, ANS: a. Critical thinking
understand, and evaluate an event, opportunity,
or an issue.
LO1. 3, BT: K, Difficulty: Easy, TOT: 8min, AACSB: Knowledge, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies.
11.
• Stakeholders: Understand the internal and external parties impacted by the data analysis
results.
• Purpose: Determine the reason for the analysis.
• Alternatives: Evaluate and rank all potential data and analysis choices during the data analysis
process.
• Risks: Consider risks to the data and the analysis choices, including assumptions and potential
biases.
• Knowledge: Identify and acquiring the knowledge necessary to properly prepare and interpret
the analyses.
• Self-reflection: Review decisions and processes for lessons learned and apply them to future
projects.
LO 1. 4, BT: C, Difficulty: Medium, TOT: 10min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
12. Student answers will vary. General examples follow.
• Motivation: All elements of critical thinking can be applied. For example, it is important to
identify the stakeholders so that their motivations are understood. Understanding those
motivations allows a better understanding of why the analysis is being performed.
• Objective: All elements of critical thinking can be applied. For example, staying focused on the
purpose of the analysis will make identifying relevant questions easier.
• Strategy: All elements of critical thinking can be applied. For example, consider alternatives for
data analysis and then choose the best data analysis method.
LO 1.4, BT: AP, Difficulty: Hard, TOT: 16 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
1-4
,13. Student answers will vary. General examples follow.
• Prepare data: All elements of critical thinking can be applied. For example, be aware of risks
when preparing data. Risks include incomplete or inaccurate data. Incomplete or inaccurate
data will result in incorrect analyses.
• Build information models: All elements of critical thinking can be applied. For example, it may
be necessary to consider alternative models and/or alternative data for our models. By
considering alternatives, we can feel more confident that we have chosen the best model.
• Explore data: All elements of critical thinking can be applied. For example, maintaining focus on
the project’s purpose will help avoid wasting time exploring the data for irrelevant questions.
Staying focused on the purpose of the analysis makes us more efficient.
LO 1.4, BT: AP, Difficulty: Hard, TOT: 14 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
14. Student answers will vary. General examples follow.
• Interpret results: All elements of critical thinking can be applied. For example, it is necessary to
identify the knowledge that is needed to understand the analysis before we interpret it. When
that knowledge is identified, we are better prepared to interpret the analysis results.
• Communicate results: All elements of critical thinking can be applied. For example, when
preparing to communicate results, it helps to consider the stakeholders who will receive the
communication. Understanding the stakeholders let’s us better identifythe audience and
structure the presentation of results based on the information they need to know.
LO 1.4, BT: AP, Difficulty: Hard, TOT: 14 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
SOLUTIONS TO BRIEF EXERCISES
BE 1.1
1. This analysis can be used to identify sales patterns and to help detect unusual sales. If unusual
patterns or sales are identified, the auditor can do further testing.
2. The months of August – November look low compared to prior months. December looks high. It
would also be helpful to compare this pattern to the prior year to identify any similarities.
LO 1.1, BT: AN, Difficulty: Easy, TOT: 8 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies, H2: Analytics an d
Accounting Professional Practice
BE 1.2
1-5
,1. Total Sales = $2,760,509,187.74
Total Costs = $1,964,399,918.41
Total Profit = $796,109,269.33
2. The data has information from 2022 to 2025. A financial dashboard can include tabs for each of the
years, quarters, and months that will allow the user to select the period they are most interested in. The
data can be displayed on the dashboard for each of the measures.
3. A visualization showing revenue and expenses can be added. Also, a table with the financial
information summary can be added. Data related to assets and liabilities would be useful as well.
Finally, a comparison of prior year to current year profit in a visualization would be useful.
LO 1.1, BT: AN, Difficulty: Medium, TOT: 8 min, AACSB: Data Analytics, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
BE 1.3
1. Descriptive
2. Diagnostic
3. Predictive
4. Descriptive
LO 1.2, BT: AP, Difficulty: Easy, TOT: 3 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
BE 1.4 Student answers will vary.
1. Financial data: Forecasted sales of scooters in Canada. Estimated costs for the expansion. Sales and
expenses for the U.S. operations to be used to estimate expense for the Canada expansion.
Non-financial data: Competitor market share. Population of major cities where scooters are used.
Weather data. Foreign exchange rates.
2. The financial data listed is internal data. The non-financial data is external.
LO 1.2, BT: C, Difficulty: Medium, TOT: 5 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
BE 1.5
1. The analysis is being performed to investigate profit margin by customer.
2. The goal is to identify if there are any customers that are below the target profit margin.
3. Perform an analysis that shows profit margin by customer and highlight the customers that are below
42% profit margin.
LO 1 2, BT: AP, Difficulty: Medium, TOT: 5 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
1-6
,BE 1.6
1. It would be easier to see if the products were grouped, and then each bar was a different year. That
way it would be easier to identify if a product is increasing or decreasing. However, we can still see that
in this visual, just not as easily. Blueberry scones seems to have decreased from 2022 to 2023, and then
increased in 2024 and decreased in 2025. All products decreased from 2022 to 2023. All products
except cinnamon buns increased in 2024. In 2025, poppyseed bagels increased the most.
2. The interpretation can be communicated orally, in writing, or visually. To communicate visually,
create a visual with groupings by product as discussed in answer 1.
LO 1.2, BT: AP, Difficulty: Medium, TOT: 5 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
BE 1.7 Guide students to the websites for accounting firms or job posting websites such as Indeed.com
or Robert Half Accounting. Student answers will vary.
Qualifications:
• Expert knowledge of general financial accounting and cost accounting.
• Understanding of and ability to adhere to generally accepted accounting principles.
• Proficient with accounting software.
• Excellent organizational skills and attention to detail.
• Excellent written and verbal communication skills.
• Proficient in Microsoft Office Suite or similar software.
• Bachelor’s degree in accounting.
Responsibilities:
• The accountant/auditor will inspect and review, but may also prepare and report, financial
transactions and budgetary controls for assigned funds and departments.
• Examines assigned financial records and statements for accuracy.
• Analyzes financial data, making recommendations as appropriate to improve accuracy,
efficiency, and to reduce costs.
• Inspects the budget and general ledger for assigned departments and accounts, ensuring that
funds are available, and expenditures are assigned correctly.
• Reviews and/or assists with preparation of financial statements and records provided to federal,
state, and internal auditors and similar personnel.
• As needed, assists with accounting duties for and corrections to listed financial records.
• As appropriate, identifies and recommends updates to accounting systems and procedures.
LO 3, BT: S, Difficulty: Medium, TOT: 10 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
BE 1.8
1-7
, Guide students to the websites for accounting firms or job posting websites such as Accounting Jobs
Today.com, Indeed.com, or Robert Half Accounting. Student answers will vary.
Qualifications:
• Ideal applicants will have proficient knowledge of accounting and tax principles.
• Bachelors or master’s degree in accounting.
• CPA license, eligibility to sit for the CPA exam or working toward obtaining license.
• Strong organizational, communication and interpersonal skills.
• Customer service skills.
• Ability to work independently.
• Ability to analyze complex matters.
• Enthusiasm for work and eagerness to learn.
Responsibilities:
• Preparation of income tax returns for individual, business, and fiduciary clients.
• Consulting engagements.
• Direct correspondence with clients.
• Direct correspondence with federal and state authorities.
• Work effectively with team members.
LO 1.3, BT: S, Difficulty: Medium, TOT: 10 min, AACSB: Analytic, AICPA FC: Leverage Technology to Develop and Enhance Functional Competencies
BE 1.9 Guide students to the websites for accounting firms or job posting websites such as Accounting
Jobs Today.com, Indeed.com, or Robert Half Accounting. Student answers will vary.
Qualifications:
• Strong and analytical ability; accuracy with numbers; and extreme attention to detail.
• Excellent computer skills using excel and Google suite.
• Experience with basic accounting software.
• Strong oral and written English communication skills.
• Communication skills must be effective and courteous requiring high integrity when dealing with
restricted and/or highly confidential information.
• Ability to establish effective working relationships with employees at all levels of the
organization.
• Ability to work diplomatically with others to discuss and resolve transactional issues as well as
discussion of policies and workflow.
• Experience with Great Plains accounting software.
Responsibilities:
• Support assigned accounts payable functions that include following procurement policy through
payment of invoices.
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