Exam 9: Data Analytics in Accounting

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.

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.

Data analytics is best described as the science of reducing extremely large datasets down to more manageable databases that can then be processed using traditional tools.

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.

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.

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.

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.

Which of the following best describes what is meant by a breach of security? A. Breaking into a locked room. B. An unencrypted data transmission. C. The unauthorized access to or acquisition of data in an electronic format that contains personal information. D. Access of personal information on a corporate server.

Tableau can be differentiated from traditional analysis tools such as Excel because it is specifically designed to perform data analysis and visualization.

Which of the following would not by itself be considered personally identifying information? A. Date of birth. B. Social Security Number. C. Passport number. D. Driver's Licence ID.