Deck 10: Data Analytics in Accounting: Concepts and the Amps Model

Question 1

Data analytics professionals estimate that they spend how much of their time cleaning data in order to perform analysis on it?

A)10-15%.
B)20-30%.
C)50-90%.
D)99+%.

Answer 1

C

Question 2

Data analytics can provide deep insight into financial data,but is not particularly useful when evaluating non-financial data such as social media.

Answer 2

False

Question 3

How does data analytics play a vital role in today's business world?

A)By allowing data to be organized into predefined tables and fields.
B)By defining three main categories of classes that help organize a company's data structure models.
C)By examining data to generate models for predictions of patterns and trends.
D)By capturing the ever-increasing transaction activity of large companies.

Answer 3

C

Question 4

As described in the text,which of the following best defines the term data analytics?

A)The ability extra and load large datasets.
B)The science of moving data from Access to Enterprise Reporting Tools to draw conculsions for decision making.
C)The process of organizing extremely large datasets to create more managability.
D)The science of examining raw data,removing excess noise,and organizing it in order to draw conclusions for decision making.

Question 5

At its core,data analytics fits into the information value chain in which of the following ways?

A)The process of data analytics aims at transforming raw data into valuable information.
B)Data analytics aims to make an organization's conversion process more efficient.
C)Data analytics requires organizations to share synced data with upstream and downstream business partners.
D)The process of data analytics is geared toward providing additional insight into customer activities and preferences.

Question 6

The four Vs of big data are volume,vector,velocity,and veracity.

Question 7

Data analytics are likely to play a significant role in future audit activities.

Question 8

Which of the following is not one of the skill sets often associated with data analytics?

A)Mining and analyzing data.
B)Creating data structures and models.
C)Bifurcating data.
D)Acquiring and cleansing data.

Question 9

Audit data standards (ADS)are standards for data files and fields typically needed to support an external audit in a given financial business process area.

Question 10

Which of the following areas of financial reporting is most suitable for applying data analytics techniques?

A)Evaluation of estimates and valuations.
B)Variance reporting.
C)Calculating the components of equity.
D)Depreciation.

Question 11

According to the results of the PWC's 18^th Annual Global CEO Survey,CEO's aren't yet ready to place a high value on data analytics.

Question 12

The process of scrubbing raw data to remove extraneous data and other noise in order to increase its usefulness is known as extract,transform and load.

Question 13

Data analytics is used to publish historical information.

Question 14

The insight provided through data analytics can help companies in all of the following ways except:

A)Dictate the policies of external business partners.
B)Create more directed marketing campaigns.
C)Identify future opportunities and risks.
D)Affect internal business processes in order to improve productivity,utilization and growth.

Question 15

Which type of question would accountants most likely use data analytics to answer?

A)Posting journal entries.
B)Account reconciliation.
C)Control framework definitions.
D)Collectibility of Loans Receivable.

Question 16

Raw data often must be scrubbed to remove extraneous data and other noise in order to become useful.This technique is known as:

A)Process,Scrub,and Import.
B)Extract,Transform,and Load.
C)Evaluate,Depopulate,and Finalize.
D)Filter,Coordinate,and Upload.

Question 17

The "M" in the AMPS model stands for "Manipulate the Data".

Question 18

Which of the following best summarizes the two key limiting factors for business systems when dealing with Big Data?

A)Data storage capacity and processing power.
B)Data availability and software tools.
C)Database organization and transaction volume.
D)Analytic skills and software tools.

Question 19

The four Vs are considered a defining feature of big data.Which of the following is the best definition of the term big data?

A)Volition,veracity,velocity & variety.
B)Variety,visibility,volocity & valuation.
C)Volume,veracity,velocity,& variety.
D)Volume,variability,variety & veracity.

Question 20

Which of the following is the best definition of the term big data?

A)Databases measured in terms of zettabytes.
B)Datasets that are too large and complex for businesses' existing systems utilizing traditional capabilities.
C)Databases for businesses that generate more than one million electronic transactions per month.
D)Datasets generated by social media applications such as Facebook,Twitter,Tencent QQ,and Instagram.

Question 21

Which type of analysis assists with understanding what is happening right now?

A)Descriptive.
B)Diagnostic.
C)Predictive.
D)Prescriptive.

Question 22

The use of data analytics will likely result in significant changes to clients' expectations of their auditors.Which of the following is most likely not one of those expected changes?

A)More innovative thinking.
B)More time spent gathering and testing data.
C)Deeper and broader insights.
D)Faster and more efficient delivery of audit findings.

Question 23

Which of the following best desribes the skill sets used in data analytics?

A)Building data warehouses;Populating data structures;Mining the data.
B)Acquiring/cleansing data;Creating data structures/models;Mining/analyzing data.
C)Developing data structures/models;Acquiring storage capacity;Analyzing the data.
D)Creating data;Building data structures;Piloting data studies.

Question 24

Which of the following is not an example of data questions which arise during the second step of the AMPS model,mastering the data?

A)Data reliability.
B)Data integrity.
C)Data serviceability.
D)Data accessibility.

Question 25

When using an analytical mindset which of the following is the first task?

A)Master the data.
B)Share the story.
C)Ask the right question.
D)Request data.

Question 26

Which of the following best describes how external auditors' interactions with their clients is likely to change due to the use of data analytics in the audit process?

A)External auditors will spend less time on audits and will not need to spend time with clients outside the audit.
B)External auditors will spend more time on detailed audit tasks,resulting in longer audit engagements.
C)External auditors will only interact with their clients virtually.
D)External auditors will stay engaged with clients beyond the audit.

Question 27

Which of the following best describes the AICPA's Audit Data Standards (ADS)?

A)The base level of testing procedures that should be performed on AIS data.
B)A set of analytic procedures designed to be used with modern ERPs' large datasets.
C)A set of standards for data files and fields designed to support external audits.
D)The codification of all auditing guidelines pertaining to the data generated by AISs.

Question 28

Which of the following does not desribe characteristics of the AMPS model?

A)Iterative.
B)Can lead to asking deeper questions.
C)Binary.
D)Leaves the decision maker more knowledgable.

Question 29

Which of the following is a set of standards created by the AICPA for data files and fields in order to support external audits?

A)Extract,Transform & Load (ETL).
B)Online Analytical Processing (OLAP).
C)Audit Control Language (ACL).
D)Audit Data Standards (ADS).

Question 30

Which type of analysis assists with understanding why something happened during the third step of the AMPS model,performing the analysis?

A)Descriptive.
B)Diagnostic.
C)Predictive.
D)Prescriptive.

Question 31

Data analytics can help in accurately identifying organizational risks.All of the following are examples of such risk except:

A)"What-if" business forecasting.
B)Identifying security breaches.
C)Identifying flawed business processes.
D)Monitoring compliance with regulatory requirements.

Question 32

Which type of analysis assists with defining how to optimize performance based on a potential constraint?

A)Descriptive.
B)Diagnostic.
C)Predictive.
D)Prescriptive.

Question 33

Which of the following should an analyst not do when on the second step of the AMPS model,mastering the data?

A)Analyze the data.
B)Analyze the cost versus the value of obtaining needed data.
C)Ensure the data is not outdated.
D)Assess privacy concerns with the data.

Question 34

Which of the following is not a good example of how accountants might use data analytics to help evaluate estimates used to value financial statement accounts?

A)Assess the likelihood and level of expected warranty claims.
B)Estimate the collectibility of accounts receivable balances.
C)Automate the order entry process for online customers.
D)Assess property,plant & equipment values based on current comparable prices.

Question 35

Which of the following is not a type of analyses performed during the third step of the AMPS model,performing the analysis?

A)Descriptive.
B)Predictive.
C)Prescriptive.
D)Reductive.

Question 36

Which of the following would not help create a appropriate question in the AMPS model?

A)Ensuring the data has integrity.
B)Making the statement succinct.
C)Narrowing the scope of the question.
D)Knowledge of business processes.

Question 37

Which of the following is not a part of the AMPS model?

A)Ask the right questions.
B)Share the story.
C)Master the data.
D)Parse the data.

Question 38

Which of the following is an example of an appropriate question to begin analyzing a business problem?

A)Why is our newest product not selling as expected in Kentucky?
B)Why is net income declining?
C)How can we increase employee morale in North Carolina?
D)Can we use confidential data?