AICPA Newly Released Questions
Budget Production (units) - Answer-Budgeted Sales
+ Ending desired Inventory
-Beginning Inventory
= Budget Production
According to the COSO Enterprise Risk Management Framework, which of the following is reduced as a
result of effective ERM? - Answer-Performance variability.
Variability creates risk and effect ERM is designed to help an entity reduce & better manage variability.
A company's goal is to make more informed business decisions through expansion of its use of data
analytics. One new company-wide data routine identified a customer group located in a specific
geographical area of the country that has increased tendency to purchase its premium products over
time. Which of the following data mining techniques was most likely used to produce this output? -
Answer-Clustering.
Clustering is a data mining technique that identifies similar data. Identifying customers in a certain
geographic area is clustering.
Association - Answer-a data mining technique that discovers links between two items & can often find
hidden patterns in data, like which products are often purchased together
Sequencing - Answer-a data mining technique that looks for sequential patterns & often helps discover
similar patterns in transaction data over time
Forecasting - Answer-uses the data mining technique of prediction (but not a data mining technique)
Budget Production (units) - Answer-Budgeted Sales
+ Ending desired Inventory
-Beginning Inventory
= Budget Production
According to the COSO Enterprise Risk Management Framework, which of the following is reduced as a
result of effective ERM? - Answer-Performance variability.
Variability creates risk and effect ERM is designed to help an entity reduce & better manage variability.
A company's goal is to make more informed business decisions through expansion of its use of data
analytics. One new company-wide data routine identified a customer group located in a specific
geographical area of the country that has increased tendency to purchase its premium products over
time. Which of the following data mining techniques was most likely used to produce this output? -
Answer-Clustering.
Clustering is a data mining technique that identifies similar data. Identifying customers in a certain
geographic area is clustering.
Association - Answer-a data mining technique that discovers links between two items & can often find
hidden patterns in data, like which products are often purchased together
Sequencing - Answer-a data mining technique that looks for sequential patterns & often helps discover
similar patterns in transaction data over time
Forecasting - Answer-uses the data mining technique of prediction (but not a data mining technique)
