Data Analytics for Accounting, 1e (Richardson)

Chapter 1   Data Analytics in Accounting and Business

1) Data analytics is the process of evaluating data with the purpose of drawing conclusions to address business questions.

2) The process of data analytics aims to transform raw information into data to create value.

3) Data analytics has the potential to transform the manner in which companies run their businesses; however, it is not practical in the near future.

4) Auditors can use social media to hear what customers are saying about a company and compare this to inventory obsolescence and other estimates.

5) Data analytics allows auditors to glean insights that are beneficial to the client, without breaching independence.

6) predictive analytics is an important aspect of data analytics for auditors but is not applicable to tax accountants.

7) The I in IMPACT Cycle represents Identify the Question.

8) The M in IMPACT Cycle represents Master the Data.

9) The P in IMPACT Cycle represents Predict the Results.

10) The A in IMPACT Cycle represents Analyze the Data.