Test Bank for Data Analytics for Accounting 3rd Edition
by Rochardson and Teeter
,ACCESS5 5 Test5 5 Bank5 5 for5 5 Data5 5 Analytics5 5 for5 5 Accounting5 5 3rd
Edition
RichardsoRichardson,55Teeter,55Terrell55–55Data
Analytics55for55Accounting,553ne
5
Solutions55Manual55–55Chapter551
Solutions55to55Multiple55Choice55Questions
1. (LO551-1)55Big55Data55is55often55described55by55the55four55Vs,55or
a. volume,55velocity,55veracity,55and55variability.
b. volume,55velocity,55veracity,55and55variety.
c. volume,55volatility,55veracity,55and55variability.
d. variability,55velocity,55veracity,55and55variety.
Answer:55b
2. LO551-
4)55Which55data55approach55attempts55to55assign55each55unit55in55a55population55into55a55sm
all55set55of55classes55(or55groups)55where55the55unit55best55fits?
a. Regression
b. Similarity55matching
c. Co-occurrence55grouping
d. Classification
Answer:55d
3. (LO551-
4)55Which55data55approach55attempts55to55identify55similar55individuals55based55on55data55k
nown55about55them?
a. Classification
b. Regression
c. Similarity55matching
d. Data55reduction
Answer:55c
4. (LO551-4)55Which55data55approach55attempts55to55predict55connections55between55two55data55items?55a.
Profiling
b. Classification
c. Link55prediction
d. Regression
Answer:55c
,ACCESS5 5 Test5 5 Bank5 5 for5 5 Data5 5 Analytics5 5 for5 5 Accounting5 5 3rd
Edition
RichardsoRichardson,55Teeter,55Terrell55–55Data
Analytics55for55Accounting,553ne
5
5. (LO551-
6)55Which55of55these55terms55is55defined55as55being55a55central55repository55of55descriptions55f
or55all55of55the55data55attributes55of55the55dataset?
a. Big55Data
b. Data55warehouse
c. Data55dictionary
d. Data55Analytics
Answer:55c
6. (LO551-5)55Which55skills55were55not55emphasized55that55analytic-minded55accountants55should55have?
a. Developed55an55analytics55mindset
b. Data55scrubbing55and55data55preparation
c. Classification55of55test55approaches
d. Statistical55data55analysis55competency
Answer:55c
7. (LO551-5)55In55which55areas55were55skills55not55emphasized55for55analytic-
minded55accountants?55a.55Data55quality
b. Descriptive55data55analysis
c. Data55visualization55and55data55reporting
d. Data55and55systems55analysis55and55design
Answer:55d
8. (LO551-4)55The55IMPACT55cycle55includes55all55except55the55following55steps:
a. perform55test55plan.
b. visualize55the55data.
c. master55the55data.
d. track55outcomes.
Answer:55b
9. (LO551-4)55The55IMPACT55cycle55specifically55includes55all55except55the55following55steps:
a. data55preparation.
b. communicate55insights.
c. address55and55refine55results.
d. perform55test55plan.
, ACCESS5 5 Test5 5 Bank5 5 for5 5 Data5 5 Analytics5 5 for5 5 Accounting5 5 3rd
Edition
RichardsoRichardson,55Teeter,55Terrell55–55Data
Analytics55for55Accounting,553ne
5
Answer:55a
10. LO551-
1)55By55the55year552024,55the55volume55of55data55created,55captured,55copied,55and55consum
ed55worldwide55will55be5514955 .
a. zettabytes
b. petabytes
c. exabytes
d. yottabytes
Answer:55a
Solutions55to55Discussion55and55Analysis55Questions
1. The55accounting55function55is55one55of55being55an55information55provider.5 5 To55the55extent5
5that55data55is55available55to55address55accounting55questions,55be55they55tax,55managerial,55
audit55or55financial55questions.55With55such55rich55available55data,55and55software55tools55to55
prepare55and55analyze55the55data,55data55analytics55will55continue55to55be55an55important55to
ol55for55accountants55to55use.
2. Data55analytics55is55defined55as55the55process55of55evaluating55data55with55the55purpose55
of55drawing55conclusions55to55address55business55questions.55Indeed,55effective55Data55Ana
lytics55provides55a55way55to55search55through55large55structured55and55unstructured55data5
5to55identify55unknown55patterns55or55relationships.
A55university55might55learn55from55the55analyzing55the55demographics55of55its55current55set5
5of55students55in55order55to55attract55its55future55student55recruits.55Did55they55come55from5
5cities55or55high55schools55that55were55close55by?55Were55their55parents55alumni55of55the55u
niversity?55Did55they55score55high55on55certain55parts55of55the55ACT?55Were55those55offered
55a55scholarship55more55likely55to55attend,55etc.?55Was55social55media55effective55in55attracti
ng55new,55potentially55stronger55students?55By55analyzing55this55type55of55data,55previously5
5unknown55patterns55will55emerge55that55will55make55recruiting55students55more55effective.
3. There55are55many55potential55answers.5 5 For55example,55Monsanto55may55use55mathematical
55and55statistical55models55to55plot55out55the55best55times55to55plant55both55male55and55fem
ale55plants55and55where55to55plant55them55to55maximize55yield.55(https://www.cio.com/article
/3221621/analytics/6-dataanalytics-55success-stories-an-inside-look.html#tk.cio_rs)
4. There55are55many55potential55answers.55Data55analytics55gives55both55internal55and55externa
l55auditors55additional55tools55to55examine55every55accounting55transaction55and55assess55for
55compliance55with55GAAP.55The55audit55process55is55changing55from55a55traditional55process
55toward55a55more55automated55one,55which55will55allow55audit55professionals55to55focus55
more55on55the55logic55and55rationale55behind55data55queries55and55less55on55the55gathering5
5of55the55actual55data.55No55longer55will55they55be55simply55checking55for55errors,55material5
5misstatements,55fraud,55and55risk55in55financial55statements55or55merely55be55reporting55th
eir55findings55at55the55end55of55the55engagement.55Instead,55audit55professionals55will55now5
5be55collecting55and55analyzing55the55company’s55data55similar55to55the55way55a55business55
analyst55would55help55management55make55better55business55decisions.5 5 In55this55way,55da
ta55analytics55offers55value55to55the55audit55function.
by Rochardson and Teeter
,ACCESS5 5 Test5 5 Bank5 5 for5 5 Data5 5 Analytics5 5 for5 5 Accounting5 5 3rd
Edition
RichardsoRichardson,55Teeter,55Terrell55–55Data
Analytics55for55Accounting,553ne
5
Solutions55Manual55–55Chapter551
Solutions55to55Multiple55Choice55Questions
1. (LO551-1)55Big55Data55is55often55described55by55the55four55Vs,55or
a. volume,55velocity,55veracity,55and55variability.
b. volume,55velocity,55veracity,55and55variety.
c. volume,55volatility,55veracity,55and55variability.
d. variability,55velocity,55veracity,55and55variety.
Answer:55b
2. LO551-
4)55Which55data55approach55attempts55to55assign55each55unit55in55a55population55into55a55sm
all55set55of55classes55(or55groups)55where55the55unit55best55fits?
a. Regression
b. Similarity55matching
c. Co-occurrence55grouping
d. Classification
Answer:55d
3. (LO551-
4)55Which55data55approach55attempts55to55identify55similar55individuals55based55on55data55k
nown55about55them?
a. Classification
b. Regression
c. Similarity55matching
d. Data55reduction
Answer:55c
4. (LO551-4)55Which55data55approach55attempts55to55predict55connections55between55two55data55items?55a.
Profiling
b. Classification
c. Link55prediction
d. Regression
Answer:55c
,ACCESS5 5 Test5 5 Bank5 5 for5 5 Data5 5 Analytics5 5 for5 5 Accounting5 5 3rd
Edition
RichardsoRichardson,55Teeter,55Terrell55–55Data
Analytics55for55Accounting,553ne
5
5. (LO551-
6)55Which55of55these55terms55is55defined55as55being55a55central55repository55of55descriptions55f
or55all55of55the55data55attributes55of55the55dataset?
a. Big55Data
b. Data55warehouse
c. Data55dictionary
d. Data55Analytics
Answer:55c
6. (LO551-5)55Which55skills55were55not55emphasized55that55analytic-minded55accountants55should55have?
a. Developed55an55analytics55mindset
b. Data55scrubbing55and55data55preparation
c. Classification55of55test55approaches
d. Statistical55data55analysis55competency
Answer:55c
7. (LO551-5)55In55which55areas55were55skills55not55emphasized55for55analytic-
minded55accountants?55a.55Data55quality
b. Descriptive55data55analysis
c. Data55visualization55and55data55reporting
d. Data55and55systems55analysis55and55design
Answer:55d
8. (LO551-4)55The55IMPACT55cycle55includes55all55except55the55following55steps:
a. perform55test55plan.
b. visualize55the55data.
c. master55the55data.
d. track55outcomes.
Answer:55b
9. (LO551-4)55The55IMPACT55cycle55specifically55includes55all55except55the55following55steps:
a. data55preparation.
b. communicate55insights.
c. address55and55refine55results.
d. perform55test55plan.
, ACCESS5 5 Test5 5 Bank5 5 for5 5 Data5 5 Analytics5 5 for5 5 Accounting5 5 3rd
Edition
RichardsoRichardson,55Teeter,55Terrell55–55Data
Analytics55for55Accounting,553ne
5
Answer:55a
10. LO551-
1)55By55the55year552024,55the55volume55of55data55created,55captured,55copied,55and55consum
ed55worldwide55will55be5514955 .
a. zettabytes
b. petabytes
c. exabytes
d. yottabytes
Answer:55a
Solutions55to55Discussion55and55Analysis55Questions
1. The55accounting55function55is55one55of55being55an55information55provider.5 5 To55the55extent5
5that55data55is55available55to55address55accounting55questions,55be55they55tax,55managerial,55
audit55or55financial55questions.55With55such55rich55available55data,55and55software55tools55to55
prepare55and55analyze55the55data,55data55analytics55will55continue55to55be55an55important55to
ol55for55accountants55to55use.
2. Data55analytics55is55defined55as55the55process55of55evaluating55data55with55the55purpose55
of55drawing55conclusions55to55address55business55questions.55Indeed,55effective55Data55Ana
lytics55provides55a55way55to55search55through55large55structured55and55unstructured55data5
5to55identify55unknown55patterns55or55relationships.
A55university55might55learn55from55the55analyzing55the55demographics55of55its55current55set5
5of55students55in55order55to55attract55its55future55student55recruits.55Did55they55come55from5
5cities55or55high55schools55that55were55close55by?55Were55their55parents55alumni55of55the55u
niversity?55Did55they55score55high55on55certain55parts55of55the55ACT?55Were55those55offered
55a55scholarship55more55likely55to55attend,55etc.?55Was55social55media55effective55in55attracti
ng55new,55potentially55stronger55students?55By55analyzing55this55type55of55data,55previously5
5unknown55patterns55will55emerge55that55will55make55recruiting55students55more55effective.
3. There55are55many55potential55answers.5 5 For55example,55Monsanto55may55use55mathematical
55and55statistical55models55to55plot55out55the55best55times55to55plant55both55male55and55fem
ale55plants55and55where55to55plant55them55to55maximize55yield.55(https://www.cio.com/article
/3221621/analytics/6-dataanalytics-55success-stories-an-inside-look.html#tk.cio_rs)
4. There55are55many55potential55answers.55Data55analytics55gives55both55internal55and55externa
l55auditors55additional55tools55to55examine55every55accounting55transaction55and55assess55for
55compliance55with55GAAP.55The55audit55process55is55changing55from55a55traditional55process
55toward55a55more55automated55one,55which55will55allow55audit55professionals55to55focus55
more55on55the55logic55and55rationale55behind55data55queries55and55less55on55the55gathering5
5of55the55actual55data.55No55longer55will55they55be55simply55checking55for55errors,55material5
5misstatements,55fraud,55and55risk55in55financial55statements55or55merely55be55reporting55th
eir55findings55at55the55end55of55the55engagement.55Instead,55audit55professionals55will55now5
5be55collecting55and55analyzing55the55company’s55data55similar55to55the55way55a55business55
analyst55would55help55management55make55better55business55decisions.5 5 In55this55way,55da
ta55analytics55offers55value55to55the55audit55function.
