Questions and Answers of Data Analytics Accounting

In which areas were skills not emphasized for analytic-minded accountants? a. Data quality.b. Descriptive data analysis.c. Data visualization and data reporting.d. Data and systems analysis and
Identify the order sequence in the classification approach to descriptive analytics (i.e., 1 is first; 6 is last) Steps of the Data Reduction Approach 1. Select a set of classification models. 2.
In which areas were skills not emphasized for analytic-minded accountants? a. Data quality.b. Descriptive data analysis.c. Data visualization and data reporting.d. Data and systems analysis and
Match the classification definitions to the appropriate classification terminology: Training data Test data Decision trees Decision boundaries Support vector machine Overfitting Underfitting
The IMPACT cycle specifically includes all except the following steps: a. Data preparation. b. Communicate insights. c. Address and refine results. d. Perform test plan.
By the year 2024, the volume of data created, captured, copied, and consumed worldwide will be 149 _____. a. Zettabytes.b. Petabytes.c. Exabytes.d. Yottabytes.
Mastering the data can also be described via the ETL process. The ETL process stands for: a. Extract, total, and load data. b. Enter, transform, and load data. c. Extract, transform,
An auditor is trying to figure out if the inventory at an electronics store chain is obsolete. From the following list, identify whether each attribute would be useful for predicting inventory
Related party transactions involve people who have close ties to an organization, such as board members. Assume an accounting manager decides that fuzzy matching would be a useful technique to find
Which of the following describes part of the goal of the ETL process? a. Identify which approach to Data Analytics should be used. b. Load the data into a relational database for
The purpose of transforming data is: a. To validate the data for completeness and integrity. b. To load the data into the appropriate tool for analysis. c. To obtain the data from the
Which attribute is required to exist in each table of a relational database and serves as the “unique identifier” for each record in a table? a. Foreign key b. Unique identifier c.
An investor wants to do an analysis of the industry’s inventory turnover using XBRL. Indicate the XBRL tags that would be used with an inventory turnover calculation. Query 1. Company Filter: 2.
The metadata that describe each attribute in a database are which of the following? a. Composite primary key b. Data dictionary c. Descriptive attributes d. Flat file
As mentioned in the chapter, which of the following is not a common way that data will need to be cleaned after extraction and validation? a. Remove headings and subtotals. b. Format
The Institute of Business Ethics proposes that a company protect the privacy of stakeholders by considering these questions of its third-party data providers: Does our company conduct
What are attributes that exist in a relational database that are neither primary nor foreign keys? a. Nondescript attributes b. Descriptive attributes c. Composite keys d.
Why is Supplier ID considered to be a primary key for a Supplier table? a. It contains a unique identifier for each supplier. b. It is a 10-digit number. c. It can either be for a
Which of the following questions are not suggested by the Institute of Business Ethics to allow a business to create value from data use and analysis, and still protect the privacy of
What is the theme of each of the six questions proposed by the Institute of Business Ethics? Which one addresses the purpose of the data? Which one addresses how the risks associated with data use
_____ is a set of data used to assess the degree and strength of a predicted relationship. a. Training data b. Unstructured data c. Structured data d. Test data.
What is the difference between a target and a class?
These data are organized and reside in a fixed field with a record or a file. Such data are generally contained in a relational database or spreadsheet and are readily searchable by search
An observation about the frequency of leading digits in many real-life sets of numerical data is called: a. Leading digits hypothesis. b. Moore’s law. c. Benford’s law. d.
Which approach to Data Analytics attempts to predict a relationship between two data items? a. Similarity matching b. Classification c. Link prediction d. Co-occurrence grouping
In general, the more complex the model, the greater the chance of: a. Overfitting the data. b. Underfitting the data. c. Pruning the data. d. A more accurate prediction of the
In general, the simpler the model, the greater the chance of: a. Overfitting the data. b. Underfitting the data.c. Pruning the data. d. The need to reduce the amount of data considered.
_____ is a discriminating classifier that is defined by a separating hyperplane that works first to find the widest margin (or biggest pipe) and then works to find the middle line. a. Linear
Auditing financial statements, looking for errors, anomalies and possible fraud, is most consistent with which type of analytics?a. Descriptive analytics b. Diagnostic analytics c.
Models associated with regression and classification data approaches all have these important parts except: a. Identifying which variables (we’ll call these independent variables) might help
Which approach to Data Analytics attempts to assign each unit in a population into a small set of classes where the unit belongs? a. Classification b. Regression c. Similarity
Go to Loughran and McDonald’s sentiment word lists at https://www3.nd.edu/~mcdonald/Word_Lists.html and download the Master Dictionary. These are what they’ve used to assess sentiment in
Go to Loughran and McDonald’s sentiment word lists at https://www3.nd.edu/~mcdonald/Word_Lists.html and download the Master Dictionary. These are what they’ve used to assess sentiment in
The preceding question asked you to figure out how the stock market responded to Amazon’s announcement that it would purchase Whole Foods. The question now is if the stock market for Amazon had
You’re asked to figure out how the stock market responded to Amazon’s announcement on June 16, 2017, that it would purchase Whole Foods—arguably a transformational change for Amazon, Walmart,
We noted in the text that negative words in the financial dictionary include words like loss, claims, impairment, adverse, restructuring, and litigation. What are other negative words might you add
Can you think of situations where sentiment analysis might be helpful to analyze press releases or earnings announcements? What additional information might it provide that is not directly in the
Can you think of how sentiment analysis might be used in a marketing setting? How could it be used in a hospital setting? Or at your university? When would it be especially good to measure the
Can you think of any other settings, besides financial reports, where tagged data might be useful for fast, accurate analysis generally completed by computers? How could it be used in a hospital
Go to finance.yahoo.com and type in the ticker symbol for Apple (AAPL) and click on the statistics tab. Which of those variables would be useful in assessing profitability?
Go to https://xbrl.us/data-rule/dqc_0015-lepr/ and find the XBRL element name for Other Non Operating Income and indicate whether XBRL says that should normally be a debit or credit entry.
Go to https://xbrl.us/data-rule/dqc_0015-lepr/ and find the XBRL element name for Interest Expense and Sales, General, and Administrative expense.
Why do audit firms perform analytical procedures to identify risk? Which type of ratios (liquidity, solvency, activity, and profitability ratios) would you use to evaluate the company’s ability to
Would you recommend the Securities and Exchange Commission require the use of sparklines on the face of the financial statements? Why or why not?
Which would you predict would have more positive sentiment in a 10-K, the financial statements or the MD&A (management discussion and analysis) of the financial statements? More positive
Why is Order Fulfillment Cycle Time an appropriate KPI for a company like Wayfair (which sells furniture online)? How long does Wayfair think customers will be ready to wait if Amazon Prime promises
If Time to Market is considered a key KPI for a company, what would be an appropriate benchmark? The industry’s Time to Market? The average Time to Market for the company for the past five years?
If ROA is considered a key KPI for a company, what would be an appropriate benchmark? The industry’s ROA? The average ROA for the company for the past five years?The competitors’ ROA?a. How will
How does Data Analytics help facilitate the use of the Balanced Scorecard and tracking KPIs? Does it make the data more timely? Are you able to access more information easier or faster, or what
From Exhibit 7-5, choose 10 Marketing KPIs to answer the following three questions.This URL (https://www.linkedin.com/pulse/20130905053105-64875646-the-75-kpis-everymanager- needs-to-know) provides
From Exhibit 7-5, choose 10 Employee Performance KPIs to answer the following three questions. This URL(https://www.linkedin.com/pulse/20130905053105-64875646-the-75-kpis-every-manager-needs-to-know)
From Exhibit 7-5, choose 5 Financial Performance KPIs to answer the following three questions. This URL (https://www.linkedin.com/pulse/20130905053105-64875646-the-
In which of the four components of a Balanced Scorecard would you put the Walton College’s diversity initiative? Why do you think this is important for a public institution of higher learning?
If the data underlying your digital dashboard are updated in real time, why would you want to update your digital dashboard in real time? Are there situations when you would not want to update your
Why is Customer Retention Rate a great KPI for understanding your Tesla customers?
For a company like Walmart, how would the Balanced Scorecard help balance the desire to be profitable for its shareholders with continuing to develop organizational capacity to compete with Amazon
For an accounting firm like PwC, how would the Balanced Scorecard help balance the desire to be profitable for its partners with keeping the focus on its customers?
Amazon, in the author’s opinion, has cared less about profitability in the short run but has cared about gaining market share. Arguably Amazon gains market share by taking care of the customer.
We know that a Balanced Scorecard is comprised of four components: financial (or stewardship), customer (or stakeholder), internal process, and organizational capacity (or learning and growth). What
We know that a Balanced Scorecard is comprised of four components: financial (or stewardship), customer (or stakeholder), internal process, and organizational capacity (or learning and growth). What
How do you think sentiment analysis of the 10-K might assess the level of bias (positive or negative) of the annual reports? If management is too positive about the results of the company, can that
How could artificial intelligence be used to help with the evaluation of the estimate for the allowance for doubtful accounts? Could past allowances be tested for their predictive ability that might
Which distributions would you recommend be tested using Benford’s law? What would a Benford’s law evaluation of sales transaction amounts potentially show? What would a test of vendor numbers or
In a certain company, one accountant records most of the adjusting journal entries at the end of the month. What type of analysis could be used to identify that this happens and the cumulative size
What are some patterns that could be found using diagnostic analysis? Between which types of variables?
What does a Z-score greater than three (or minus three) suggest? How is that useful in finding extreme values? What type of analysis should we do when we find extreme or outlier values?
One of the benefits of Data Analytics is the ability to see and test the full population. In that case, why is sampling (even monetary sampling) still used, and how is it useful?
One type of descriptive analytics is age analysis. Why are auditors particularly interested in the aging of accounts receivable and accounts payable? How does this analysis help evaluate management
One type of descriptive analytics is simply sorting data. Why is seeing extreme values helpful (minimums, maximums, counts, etc.) in evaluating accuracy and completeness and in potentially finding
An example of prescriptive analytics is when an action is recommended based on previously observed actions. For example, an analysis might help determine procedures to follow when new accounts are
Using Table 6-2 as a guide, compare and contrast predictive and prescriptive analytics. How might these be used in an audit? Or a continuous audit?Table 6-2 Example CAATS Analytic Type Example Audit
When do you believe that Data Analytics will add value to the audit process? How can it most help?
How do nature, extent, and timing of audit procedures help us identify when to apply Data Analytics to the audit process?
Implementing continuous auditing procedures is similar to automating an audit plan with the additional step of scheduling the automated procedures to match the timing and frequency of the data being
What approach should a company make if its continuous audit system has too many alarms that are false positives? How would that approach change if there are too many missed abnormal events (such as
Simple to complex Data Analytics can be applied to a client’s data during the planning stage of the audit to identify which areas the auditor should focus on. Which types of techniques or tests
Who developed the audit data standards? In your opinion, why is it the right group to develop and maintain them rather than, say, the Big 4 firms or a small practitioner?
Consider Exhibit 5-3. Looking at the audit data standards order-to-cash process, what function is there for the AR_Adjustments transaction table—that is, adjustments to the Accounts Receivable? Why
What are the advantages of the use of homogeneous systems? Would a merger target be more attractive if it used a similar financial reporting system as the potential parent company?
Why would audit firms prefer to use proprietary work papers rather than just storing working papers on the cloud?
Would an auditor view heterogeneous systems as an audit risk? Why or why not?
Why is it better to extract data from a data warehouse than a production or live system directly?
How does the systems translator software work? How does it store the merged data into a data warehouse?
Is it possible for multinational firms to have many different financial reporting systems and ERP packages all in use at the same time?
Is it possible for a firm to have general journals from a product like JD Edwards actually reconcile to the general ledger in SAP? Why or why not?
Why has most innovation in Data Analytics originated more in an internal audit than an external audit? Or if not, why not?
In your opinion, is the primary reason that analysts use inappropriate scales for their charts primarily due to an error related to naivete (or ineffective training), or are the inappropriate scales
Datavizcatalogue.com lists seven types of maps in its listing of charts. Which one would you use to assess geographic customer concentration by number? How could you show if some customers buy more
The Big 4 accounting firms (Deloitte, EY, KPMG, and PwC) dominate the audit and tax market in the United States. What chart would you use to show which accounting firm dominates in each state in
According to Exhibit 4-8, which is the best chart for static composition of a data item of the Accounts Receivable balance at the end of the year? Which is best for showing a change in composition
According to Exhibit 4-8, which is the best chart for comparisons of earnings per share over many periods? How about for only a few periods?Exhibit 4-8 Conceptual (Qualitative) Data-Driven
Evaluate the use of multiple colors in the graphic associated with the opening vignette regarding the 2016 presidential election. Would you consider its use effective or ineffective? Why? Can you
Why was the graphic associated with the opening vignette regarding the 2016 presidential election an effective way to communicate the voter outcome for 50 states? What else could have been used to
According to the text and your own experience, why is Tableau ideal for exploratory data analysis?
The text mentions, “If your data analysis project is more declarative than exploratory, it is more likely that you will perform your data visualization to communicate results in Excel.” In your
What would be the best chart to use to illustrate earnings per share for one company over the past five years?
Based on the data from datavizcatalogue.com, how does a box and whisker plot show if the data are symmetrical?
Based on the data from datavizcatalogue.com, what are some major flaws of using word clouds to communicate the frequency of words in a document?
Based on the data from datavizcatalogue.com, a line graph is best at showing comparisons, relationships, compositions, or distributions? Name the best two.
Box and whisker plots (or box plots) are particularly adept at showing extreme observations and outliers. In what situations would it be important to communicate these data to a reader? Any

Showing 100 - 200 of 258