Question 1

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

Accepted Answer

A)  Data reliability.
B)  Data integrity.
C)  Data serviceability.
D)  Data accessibility.E) C) and D)
F) B) and C)

Question 2

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

Accepted Answer

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.E) A) and B)
F) A) and C) A

Question 3

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

Accepted Answer

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.E) C) and D)
F) A) and B)

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  "What-if" business forecasting.
B)  Identifying security breaches.
C)  Identifying flawed business processes.
D)  Monitoring compliance with regulatory requirements.E) All of the above
F) C) and D)

Question 6

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?

Accepted Answer

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.E) A) and B)
F) B) and C)

Question 7

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

Accepted Answer

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.E) A) and D)
F) B) and C) C

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)  Extract,Transform & Load (ETL) .
B)  Online Analytical Processing (OLAP) .
C)  Audit Control Language (ACL) .
D)  Audit Data Standards (ADS) .E) B) and C)
F) All of the above

Question 10

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

Accepted Answer

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.E) B) and D)
F) None of the above A

Question 11

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?

Accepted Answer

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.E) A) and C)
F) A) and B)

Question 12

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?

Accepted Answer

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.E) A) and B)
F) B) and C)

Question 13

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

Accepted Answer

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

Question 14

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.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

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.E) C) and D)
F) B) and D)

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

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

Question 18

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

Accepted Answer

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?E) None of the above
F) A) and D)

Question 19

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

Accepted Answer

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

Question 20

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

Accepted Answer

A)  Evaluation of estimates and valuations.
B)  Variance reporting.
C)  Calculating the components of equity.
D)  Depreciation.E) A) and D)
F) None of the above

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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedA

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedC

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedA

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?

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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A

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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.

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C

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