Data Analytics Chapter 5 Quiz

1) Under the guidance of the chief audit executive (CAE) or another manager, teams can develop and implement analytical techniques to aid the following audits except:

A) information systems audits.

B) social media audits.

C) compliance audits.

D) forensic audits in the case of fraud.

B) social media audits.

1) Under the guidance of the chief audit executive (CAE) or another manager, teams can develop and implement analytical techniques to aid the following audits except:

A) governance audits.

B) risk audits.

C) management audits.

D) compliance audits.

C) management audits.

1) Which Accounting Data Standard identifies data needed for purchase orders, goods received, invoices, payments, and adjustments to accounts?

A) Base Standard

B) General Ledger Standards

C) Procure to Pay Subledger Standard

D) Inventory Subledger Standard

C) Procure to Pay Subledger Standard

1) Which Accounting Data Standard focuses on sales orders, accounts receivable, shipments, invoices, cash receipts and adjustments to accounts?

A) General Ledger Standards

B) Order to Cash Subledger

C) Procure to Pay Subledger Standard

D) Inventory Subledger Standard

B) Order to Cash Subledger

1) Which Accounting Data Standard defines the format for files and fields as well as some master data for users and business units?

A) Base Standard

B) General Ledger Standards

C) Order to Cash Subledger

D) Procure to Pay Subledger Standard

A) Base Standard

1) Which of the following best defines the Accounting Data Standards: Procure to Pay Subledger?

A) Focuses on sales orders, accounts receivable, shipments, invoices, cash receipts and adjustments to accounts.

B) Identifies data needed for purchase orders, goods received, invoices, payments, and adjustments to accounts.

C) Adds the chart of accounts, source listings, trial balance, and GL (journal entry) detail.

D) Defines product master data, location data, inventory on hand data, and inventory movement.

B) Identifies data needed for purchase orders, goods received, invoices, payments, and adjustments to accounts.

1) Which of the following best defines the Accounting Data Standards: General Ledger?

A) Focuses on sales orders, accounts receivable, shipments, invoices, cash receipts and adjustments to accounts.

B) Identifies data needed for purchase orders, goods received, invoices, payments, and adjustments to accounts.

C) Adds the chart of accounts, source listings, trial balance, and GL (journal entry) detail.

D) Defines the format for files and fields as well as some master data for users and business units.

C) Adds the chart of accounts, source listings, trial balance, and GL (journal entry) detail.

1) Which of the following best defines the Accounting Data Standards: Base Standard?

A) Focuses on sales orders, accounts receivable, shipments, invoices, cash receipts and adjustments to accounts.

B) Identifies data needed for purchase orders, goods received, invoices, payments, and adjustments to accounts.

C) Adds the chart of accounts, source listings, trial balance, and GL (journal entry) detail.

D) Defines the format for files and fields as well as some master data for users and business units.

D) Defines the format for files and fields as well as some master data for users and business units.

1) Which of the following describes a homogenous systems approach?

A) Ensures that all of its divisions and subsidiaries use a uniform installation of the chosen ERP system.

B) Allows all divisions and subsidiaries use the ERP system that works best for each location.

C) Provides a single table of data with user-defined attributes that is stored separate from any application.

D) Maps the various tables and fields from multiple ERP systems.

A) Ensures that all of its divisions and subsidiaries use a uniform installation of the chosen ERP system.

1) Which of the following describes an example of a flat file?

A) Ensures that all of its divisions and subsidiaries use a uniform installation of the chosen ERP system.

B) Allows all divisions and subsidiaries use the ERP system that works best for each location.

C) Provides a single table of data with user-defined attributes that is stored separate from any application.

D) Maps the various tables and fields from multiple ERP systems.

C) Provides a single table of data with user-defined attributes that is stored separate from any application.

1) Which of the following describes a heterogeneous system approach?

A) Ensures that all of its divisions and subsidiaries use a uniform installation of the chosen ERP system.

B) Allows all divisions and subsidiaries to use the ERP system that works best for each location.

C) Provided a single table of data with user-defined attributes that is stored separately from any application.

D) Maps the various tables and fields from multiple ERP systems.

B) Allows all divisions and subsidiaries to use the ERP system that works best for each location.

1) Which of the following ensures that all of its divisions and subsidiaries use a uniform installation of one ERP system?

A) Continuous reporting.

B) Continuous monitoring.

C) The heterogeneous systems approach.

D) The homogenous systems approach.

D) The homogenous systems approach.

1) Which of the following 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 information?

A) Continuous reporting.

B) Continuous monitoring.

C) The heterogeneous systems approach.

D) The homogenous systems approach.

C) The heterogeneous systems approach.

1) Which of the following constantly evaluates internal controls and transactions?

A) Continuous reporting.

B) Continuous monitoring.

C) The heterogeneous systems approach.

D) The homogenous systems approach.

B) Continuous monitoring.

1) Which of the following provides the status of the system so that an auditor can know at any given time whether the system is operating within the parameters?

A) Continuous reporting

B) Continuous monitoring

C) The heterogeneous systems approach

D) The homogenous systems approach

A) Continuous reporting

1) Continuous auditing relies heavily on alarms, which are essentially notifications of a classification problem. What occurs when a normal transaction is classified as problematic?

A) False negative.

B) True negative.

C) True positive.

D) False positive.

D) False positive.

1) Continuous auditing relies heavily on alarms, which are essentially notifications of a classification problem. What occurs when a normal transaction is not classified as problematic?

A) False negative.

B) True negative.

C) True positive.

D) False positive.

B) True negative.

1) A repository of data accumulated from internal and external data sources, including financial data, to help management decision making is called a:

A) flat file.

B) data warehouse.

C) homogenous system.

D) heterogeneous system.

B) data warehouse.

1) A tool used to map existing database tables and fields from various systems to a standardized set of tables and fields for use with analytics is called a:

A) database diagram.

B) common data model.

C) data dictionary.

D) data warehouse.

B) common data model.

1) Chapter 5 discusses the essential properties of working papers. With respect to data analytics, working papers should contain the following items except:

A) work programs used to document the audit procedures to collect, manipulate, model, and evaluate data.

B) evidence, including data extracts, transformed data, and model output that provides support for the functioning controls and management assertions.

C) superseded drafts of working papers or financial statements, notes that reflect incomplete or preliminary thinking, previous copies of documents corrected for typographical or other errors, and duplicates of documents.

D) documentation about existing automated controls, including parameters and variables used for analysis.

C) superseded drafts of working papers or financial statements, notes that reflect incomplete or preliminary thinking, previous copies of documents corrected for typographical or other errors, and duplicates of documents.

1) Microsoft Teams or Slack are examples of:

A) collaboration tools.

B) electronic workpaper platforms.

C) audit evidence tools.

D) audit testing tools.

A) collaboration tools.

1) PWC uses all but the following systems to automate its audit process?

A) Halo

B) Sky

C) Aura

D) Connect

B) Sky

1) Working papers should include all but the following items (as they relate to data analytics).

A) Regression algorithms used in analysis

B) Documentation about existing automated controls

C) Database maps

D) Evidence including data extracts

A) Regression algorithms used in analysis

1) All of the following are standards used in an audit methodology except:

A) PCAOB

B) COBIT

C) COSO

D) FASAC

D) FASAC

1) The__________ of the audit defines parameters that will be used to filter the records or transactions being evaluated.

A) scope

B) methodology

C) plan

D) IMPACT model

A) scope

1) The__________ of the audit consists of a methodology, the scope of the audit, the potential risk areas, and procedures and specific tasks the audit team will execute.

A) formal evaluation

B) procedures and specific tasks

C) plan

D) IMPACT model

B) procedures and specific tasks