CHAPTER 1 DATA ANALYTICS IN
ACCOUNTING AND BUSINESS AND
ANSWERS
The process of evaluating data with the purpose of drawing
conclusions to address business questions is defined as: -
CORRECT ANSWER-Data Analytics
Data sets that are too large and complex for businesses'
existing systems to handle are called _____. - CORRECT
ANSWER-big data
McKinsey Global Institute estimates that Data Analytics could
generate up to $3 _____ in value each year. - CORRECT
ANSWER-trillion
The Forbes Insight/KPMG report, "Audit 2020: A Focus on
Change.", found that the vast majority of survey respondents
believe that technology will enhance the quality, transparency,
and _____ of the audit. - CORRECT ANSWER-accuracy
Audit firms are increasingly considering operational data such
as manufacturing logs, customer relationship management data
and supply chain data primarily to _____: - CORRECT
ANSWER-help companies refine their operations
True or false: Data analytics involves only the analysis of
unstructured data. - CORRECT ANSWER-False
The 3 V's describing Big Data include: Volume, Variety and
_____. - CORRECT ANSWER-Velocity
, Traditional audit approaches tested data _____ of the
transactions; in contrast, audits that fully integrates big data
and analytics will test the full _____ of data. - CORRECT
ANSWER-sample; population
The real value inherent in data comes from _____, discovering
the various buying patterns of customers, investigating
anomalies that were not predicted in firm operations,
forecasting future demand and supply and so on. - CORRECT
ANSWER-data analytics
The Forbes Insight/KPMG report, "Audit 2020: A Focus on
Change.", found that the vast majority of survey respondents
believe that technology will enhance the quality, _____, and
accuracy of the audit. - CORRECT ANSWER-transparency
True or false: Data Analytics can impact Financial Accounting
by helping evaluate estimates and valuations. - CORRECT
ANSWER-True
In a significant paradigm shift, data analytics will allow auditors
to: - CORRECT ANSWER-stay engaged with clients beyond
the audit
Data Analytics may use what source to assess the probability
of a goodwill write-down, warranty claims or the collectability of
bad debts? - CORRECT ANSWER-Social media
Tax compliance deals primarily with filing tax returns. In
contrast, tax planning primarily helps - CORRECT ANSWER-
minimize the amount of taxes paid.
True or false: Data analytics expands auditors' capabilities in
services like testing for fraudulent transactions. - CORRECT
ANSWER-True
ACCOUNTING AND BUSINESS AND
ANSWERS
The process of evaluating data with the purpose of drawing
conclusions to address business questions is defined as: -
CORRECT ANSWER-Data Analytics
Data sets that are too large and complex for businesses'
existing systems to handle are called _____. - CORRECT
ANSWER-big data
McKinsey Global Institute estimates that Data Analytics could
generate up to $3 _____ in value each year. - CORRECT
ANSWER-trillion
The Forbes Insight/KPMG report, "Audit 2020: A Focus on
Change.", found that the vast majority of survey respondents
believe that technology will enhance the quality, transparency,
and _____ of the audit. - CORRECT ANSWER-accuracy
Audit firms are increasingly considering operational data such
as manufacturing logs, customer relationship management data
and supply chain data primarily to _____: - CORRECT
ANSWER-help companies refine their operations
True or false: Data analytics involves only the analysis of
unstructured data. - CORRECT ANSWER-False
The 3 V's describing Big Data include: Volume, Variety and
_____. - CORRECT ANSWER-Velocity
, Traditional audit approaches tested data _____ of the
transactions; in contrast, audits that fully integrates big data
and analytics will test the full _____ of data. - CORRECT
ANSWER-sample; population
The real value inherent in data comes from _____, discovering
the various buying patterns of customers, investigating
anomalies that were not predicted in firm operations,
forecasting future demand and supply and so on. - CORRECT
ANSWER-data analytics
The Forbes Insight/KPMG report, "Audit 2020: A Focus on
Change.", found that the vast majority of survey respondents
believe that technology will enhance the quality, _____, and
accuracy of the audit. - CORRECT ANSWER-transparency
True or false: Data Analytics can impact Financial Accounting
by helping evaluate estimates and valuations. - CORRECT
ANSWER-True
In a significant paradigm shift, data analytics will allow auditors
to: - CORRECT ANSWER-stay engaged with clients beyond
the audit
Data Analytics may use what source to assess the probability
of a goodwill write-down, warranty claims or the collectability of
bad debts? - CORRECT ANSWER-Social media
Tax compliance deals primarily with filing tax returns. In
contrast, tax planning primarily helps - CORRECT ANSWER-
minimize the amount of taxes paid.
True or false: Data analytics expands auditors' capabilities in
services like testing for fraudulent transactions. - CORRECT
ANSWER-True
