Final Exam Data Analytics 2024 EXAM
BEST STUDYING MATERIAL WITH
VERIFIED ANSWERS LATEST UPDATE
2024-2025.
The IRS uses an algorithm called the ___ that pulls historical data for average amount
and type of deductions related to income level and predicts the likelihood of
underreported income.
- ANSWER discriminant function algorithm
Levels of technology/ tax training would be an example of which kind of KPI? -
ANSWER tax efficiency and effectiveness
Levels of job satisfaction would be an example of which kind of KPI?
- ANSWER tax efficiency and effectiveness
A tax ___ is used to extract past and real-time data from the financial reporting system
that is most applicable to the tax function.
- ANSWER data mart
All of the following are included in a company's data warehouse except
- ANSWER Enterprise data
Data analytics used to qualify for r&d tax credits by:
- ANSWER using data analytics to provide supporting documentation of R&D
expenditures made
Which type of tax analytics provide insight creating a trend analysis for sales and use
tax paid in different locations would help identify seasonal or abnormal transaction
volume that warrant future investigation?
- ANSWER diagnostic analytics
Which type of tax analytics provide insight into the current processes, policies, and
calculations related to determining tax liability?
- ANSWER descriptive analytics
Which type of tax analytics provide insight which might help identify items of interest,
such as high tax areas or excluded transactions?
- ANSWER diagnostic analytics
,Which type of tax analysis tests the impact of various input data on an expected output?
- ANSWER What-if Scenario Analysis
The amount of time spent on compliance vs strategic activities could be an example of
which kind of KPI?
- ANSWER tax efficiency and effectiveness
Tax-focused KPIs appear on dashboards or cockpits, consistent with which components
of the IMPACT model?
- ANSWER communicate insights
Querying the tax data mart would be consistent with which components of the IMPACT
model?
- ANSWER Perform the analysis
According to the text, all but which of the following data marts come from a company
wide data warehouse?
- ANSWER Compensation
Potential items that comprise permanent differences between book and tax income
include all but the following:
- ANSWER R&D expense
Which accounting data standard identifies product master data, location data, inventory
on hand data, and inventory movement?
- ANSWER Inventory subledger standard
Which accounting data standard defines the format for files and fields as well as some
master data for users and business units
- ANSWER Base standard
Which of the following best defines the accounting data standards: order to cash
subledger?
- ANSWER Focuses on sales orders, accounts receivable, shipments, invoices, cash
receipts, and adjustments to accounts
Which of the following describes an example of a flat file?
- ANSWER Provides a single table of data with user-defined attributes that is stored
separate from any application
Which of the following describes a heterogeneous system approach?
- ANSWER Allows all divisions and subsidiaries to use the ERP system that works best
for each location
, ___ ensures all of its divisions and subsidiaries use a uniform installation of one ERP
system. ___ allows for the use of bolt on systems of companies that are acquired and
uses a series of translators to convert the output of various systems into usable financial
info.
- ANSWER The heterogeneous systems approach. The homogeneous systems
approach
Continuous auditing relies heavily on alarms, which are essentially notifications of a
classification problem. A ___ occurs when too many alarms are false positives. -
ANSWER Flood of alarms
Continuous auditing relies heavily on alarms, which are essentially notifications of a
classification problem. A ___ occurs when an abnormal transaction is classified as
problematic.
- ANSWER True positive
Continuous auditing relies heavily on alarms, which are essentially notifications of a
classification problem. A ___ occurs when an abnormal transaction is not classified as
problematic.
- ANSWER False negative
With the respect to data analytics, working papers should contain the following items
except:
- ANSWER Evidence, including performance evaluations of the competency of the
auditors completing the workpaper
With the respect to data analytics, working papers should contain the following items
except:
- ANSWER Memos to future auditors documenting issues with problem members of the
client's management team
Under the guidance of a CAE or other manager, teams can develop and implement
analytical techniques to aid the following audit except:
- ANSWER Risk audits
TeamMate or Xero are examples of: - ANSWER Electronic workpaper platforms
The ___ of the audit defines parameters that will be used to filter the records or
transactions being evaluated:
- ANSWER scope
Which of the following statements is true?
- ANSWER monetary unit sampling allows auditors to evaluate account balances
When working with CAATs, which of the following statements is false?
- ANSWER Outer join will show all records, including only matching ones
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