Acct Analytics Final

Ch 4-8

Polar bears, brown bears, black bears would be best described as what kind of data?

Nominal data (simple categories)

What data is the least sophisticated type of data?

Nominal

Is qualitative data categorical?

True

Is the value of 0 in interval data simply another number on the scale?

True

The Fahrenheit scale of temperature measurement would be best described as what kind of data?

Interval data (0 is just another number)

What type of data would be considered the most sophisticated type of data?

Ratio data (0 is absence of)

Which is not nominal data?: hair color, SAT scores, gender, ethnicity

SAT scores

What are the 4 chart types of data?

Quantitative, qualitative, exploratory, declarative

1st, 2nd and 3rd are best described as what kind of data?

Ordinal data (can be ranked)

Data that is represented by whole numbers is what type of data?

Discrete data (whole numbers!)

A company has two divisions, one in the US and another in China. One uses Oracle and the other uses SAP for basic accounting systems. What kind of system is this?

Heterogeneous systems

When there is an alarm in a continuous audit but it is associated with a normal event, it is called what?

False positive

When there is no alarm in a continuous audit but there is an abnormal event, it is called what?

False negative

If purchase orders are monitored for unauthorized activity in real time while month-end adjusting entries are evaluated once a month, those transactions monitored in real time are called what?

Continuous audit

Who is most likely to have a working knowledge of the various enterprise systems that are in use in the company?

Internal auditor

Which audit technique is used to test completeness?

Sequence check

Benford’s law suggests that the first digit of naturally occurring numerical datasets follow an expected distribution of what?

The lower leading digit is more common than the next (8 more than 9)

Which type of audit analytics might be used to find hidden patterns or variables linked to abnormal behavior?

Diagnostic or predictive analytics

What describes finding correspondences between at least two types of text or entries that may not match perfectly?

Fuzzy matching

What type of analysis would help auditors find missing checks?

Sequence check

Quantitative vs Qualitative

Data driven vs Conceptual

Types of qualitative data (3):

Nominal, ordinal, proportion

Types of quantitative data (5):

Ratio, interval, discrete, continuous, distributions

Declarative vs Exploratory visualization

Used to present findings vs Used to gain insights while interacting with data

What is the process businesses are embracing to capture transactions and metadata?

Automation

What helps provide details on events that occur throughout business to control costs?

Sensors

What are formed to manage robotic process automation that helps capture and transform data because it is easier to train small amounts?

Centers of expertise

Homogeneous vs Heterogeneous ERP systems

Easier to work with bc location of key data is known vs Requiring a system translation engine/mapping due to acquisition

What process evaluates controls/transactions used by management to show effectiveness of internal controls?

Continuous monitoring

What process provides the status of the audit procedures and output of the information systems?

Continuous reporting

What is it called when you determine the problematic or normal violations of continuous auditing?

Evaluating audit exceptions

Descriptive managerial analytics

Summary stats, crosstabulations of performance, KPIs, computation of job order/process costing

Diagnostic managerial analytics

Helps find correlations, regression analysis, compare KPIs to expectations, conditional formatting

Predictive managerial analytics

Sales forecasting, macroeconomic forecasting, regression, classifying indirect costs

Prescriptive managerial analytics

What if/marginal, goal seek, cash flow and sensitivity anaysis

Variance analysis

Compare actual results to budgeted in bullet bar charts

Cost behavior

Understand what’s driving costs to predict, can use regression scatter plot

What is the interactive report showing the most important metrics?

Digital dashboard

What is the important of measuring?

“What gets measured and reported gets done”

XBRL

Extensible Business Reporting Language

Which techniques are prescriptive analytics?

Sensitivity analysis evaluating assumptions of future performance, breakeven level in sales, capital budgeting (NOT crosstabulation analyzing past performance)

What would be considered an operational KPI?

Inventory shrinkage rate

What does KPI stand for?

Key performance indicator

The most important KPIs should be placed in what corner of the page?

Top left

What questions are helpful in refining a dashboard?

Which metric are you using most frequently to help make decisions?

Are you downloading the data to do any additional analysis after working with the dashboard, and if so, can the dashboard be improve to save those extra steps?

Are there any metrics that you do not use and why aren’t they helpful?

(NOT which data are easiest to access or collect?)

What are included components of a balanced scorecard?

Financial performance, customer/stakeholder, internal process (NOT employee capacity)

What would be considered to be a diagnostic analytics technique in managerial acct?

Price and rate variance analysis

What would be considered to be a prescriptive analytics technique in managerial acct?

Capital budgeting