Under the guidance of the chief audit executive (CAE) or another manager, internal auditors build teams to develop and implement analytical techniques to aid all of the following except: process efficiency and effectiveness. governance, risk, and compliance, including internal controls effectiveness. tax compliance. support for the financial statement audit.

tax compliance.

Which audit data standards ledger defines product master data, inventory location data, inventory on hand data, and inventory movement? Order to Cash Subledger Procure to Pay Subledger Inventory Subledger Base Subledger

Inventory Subledger

Which audit data standards ledger identifies data needed for purchase orders, goods received, invoices, payments, and adjustments to accounts? Order to Cash Subledger Procure to Pay Subledger Inventory Subledger Base Subledger

Procure to Pay Subledger

A company has two divisions, one in the United States and the other in China. One uses Oracle and the other uses SAP for its basic accounting system. What would we call this? Homogeneous systems Heterogeneous systems Dual data warehouse systems Dual lingo accounting systems

Heterogeneous systems

Which of the following defines the time period, the level of materiality, and the expected time for an audit? Audit scope Potential risk Methodology Procedures and specific tasks

Audit scope

All of the following may serve as standards for the audit methodology except: PCAOB's auditing standards COSO's ERM framework ISACA's COBIT framework FASB's accounting standards

FASB's accounting standards

When there is an alarm in a continuous audit, but it is associated with a normal event, we would call that a: false negative. true negative. true positive. false positive.

false positive.

When there is no alarm in a continuous audit, but there is an abnormal event, we would call that a: false negative. true negative. true positive. false positive.

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 would be an example of: a traditional audit. a periodic test of internal controls. a continuous audit. discrete data.

a continuous audit.

Who is most likely to have a working knowledge of the various enterprise systems that are in use in the company? Chief executive officer External auditor Internal auditor IT staff

Internal auditor

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: information systems audits. social media audits. compliance audits. forensic audits in the case of fraud.

social media audits.

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: financial statement audits. archaic audits process efficiency audits. forensic audits.

archaic audits

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: Multiple Choice governance audits. risk audits. management audits. compliance audits

management audits.

Which Accounting Data Standard identifies data needed for purchase orders, goods received, invoices, payments, and adjustments to accounts? Base Standard General Ledger Standards Procure to Pay Subledger Standard Inventory Subledger Standard

Procure to Pay Subledger Standard

Which Accounting Data Standard identifies product master data, location data, inventory on hand data, and inventory movement? Base Standard General Ledger Standards Procure to Pay Subledger Standard Inventory Subledger Standard

Inventory Subledger Standard

Which Accounting Data Standard focuses on sales orders, accounts receivable, shipments, invoices, cash receipts and adjustments to accounts? General Ledger Standards Order to Cash Subledger Standard Procure to Pay Subledger Standard Inventory Subledger Standard

Order to Cash Subledger Standard

Which Accounting Data Standard defines the format for files and fields as well as some master data for users and business units? Base Standard General Ledger Standards Order to Cash Subledger Standard Procure to Pay Subledger Standard

Base Standard

Which Accounting Data Standard includes the chart of accounts, source listings, trial balance, and GL detail? Base Standard General Ledger Standards Order to Cash Subledger Standard Procure to Pay Subledger Standard

General Ledger Standards

Which of the following is a trend that is impacting the assurance market? External auditors are required to work independently of internal auditors in all cases. External auditors are prohibited from accessing client-provided data analytics tools. External auditors must perform all work manually, without using automation tools. External auditors are permitted to rely on the work of internal auditors to provide support for

External auditors are permitted to rely on the work of internal auditors to provide support for

What is the first step for automating the audit plan and incorporating data analytics? Select the appropriate software tools for data analytics. Identify the questions or requirements in the existing audit plan. Determine the audit timeline and resource needs. Begin by creating the final report to guide analysis.

Identify the questions or requirements in the existing audit plan.

What is the last step for automating the audit plan and incorporating data analytics? Track outcomes by following up on alarms and refining the models as needed. Develop initial models for each component of the audit. Identify the most frequently encountered errors. Finalize all data collection techniques.

Track outcomes by following up on alarms and refining the models as needed.

One advantage of offloading routine audit tasks to a remote or seasonal worker is: increasing the overall cost of the audit. limiting the audit team’s access to specialized data. freeing up onsite auditors to use more professional judgment and expertise during the engagement. reducing the need for technical skills among onsite auditors.

freeing up onsite auditors to use more professional judgment and expertise during the engagement.

Which of the following best defines the Accounting Data Standards: Base Standard? Focuses on sales orders, accounts receivable, shipments, invoices, cash receipts and adjustments to accounts. Identifies data needed for purchase orders, goods received, invoices, payments, and adjustments to accounts. Adds the chart of accounts, source listings, trial balance, and GL detail. Defines the format for files and fields as well as some master data for users and business units.

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

Which of the following describes a homogeneous systems approach? Ensures that all of its divisions and subsidiaries use a uniform installation of the chosen enterprise resource planning (ERP) system. Allows all divisions and subsidiaries to use the enterprise resource planning (ERP) system that works best for each location. Provides a single table of data with user-defined attributes that is stored separate from any application. Maps the various tables and fields from multiple enterprise resource planning (ERP) systems.

Ensures that all of its divisions and subsidiaries use a uniform installation of the chosen enterprise resource planning (ERP) system.

Which of the following describes an example of a flat file? Ensures that all of its divisions and subsidiaries use a uniform installation of the chosen enterprise resource planning (ERP) system. Allows all divisions and subsidiaries to use the enterprise resource planning (ERP) system that works best for each location. Provides a single table of data with user-defined attributes that is stored separate from any application. Maps the various tables and fields from multiple enterprise resource planning (ERP) systems.

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

Which of the following describes an example of a production system? Collects, reports, and is directly affected by current transactions. Allows all divisions and subsidiaries to use the enterprise resource planning (ERP) system that works best for each location. Provides a single table of data with user-defined attributes that is stored separately from any application. Maps the various tables and fields from multiple enterprise resource planning (ERP) systems.

Collects, reports, and is directly affected by current transactions.

Which of the following describes systems translator software? Collects, reports, and is directly affected by current transactions. Allows all divisions and subsidiaries to use the enterprise resource planning (ERP) system that works best for each location. Provides a single table of data with user-defined attributes that is stored separately from any application. Maps the various tables and fields from multiple enterprise resource planning (ERP) systems.

Maps the various tables and fields from multiple enterprise resource planning (ERP) systems.

Which of the following constantly evaluates internal controls and transactions? Continuous reporting. Continuous monitoring. The heterogeneous systems approach. The homogeneous systems approach.

Continuous monitoring.

Continuous auditing relies heavily on alarms, which are essentially notifications of a classification problem. What occurs when too many alarms are false positives? Flood of alarms. Exception report. A negative event. Data warehouse.

Flood of alarms.

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

False positive.

Continuous auditing relies heavily on alarms, which are essentially notifications of a classification problem. What occurs when an abnormal transaction is classified as problematic? False negative. True negative. True positive. False positive.

True positive.

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? False negative. True negative. True positive.

True negative.

A repository of data accumulated from internal and external data sources, including financial data, to help management decision making is called a: flat file. data warehouse. homogeneous system. heterogeneous system.

data warehouse.

Chapter 5 discusses the essential properties of working papers. With respect to data analytics, working papers should contain the following items except: work programs used to document the audit procedures to collect, manipulate, model, and evaluate data. evidence, including performance evaluations, of the competency of the auditors completing the working paper. database maps and data dictionaries that define the location and types of data auditors will analyze. documentation about existing automated controls, including parameters and variables used for analysis.

evidence, including performance evaluations, of the competency of the auditors completing the working paper.

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: governance audits. risk audits. security audits. forensic audits.

security audits.

Microsoft Teams or Slack are examples of: collaboration tools. electronic workpaper platforms. audit evidence tools. audit testing tools.

collaboration tools.

TeamMate or Xero are examples of: collaboration tools. electronic workpaper platforms. audit evidence tools. audit testing tools.

electronic workpaper platforms.

PWC uses all but the following systems to automate its audit process? Halo Sky Aura Connect

Sky

Working papers should include all but the following items (as they relate to data analytics). Work programs IT-related documentation Algorithms used in analysis Data extracts

Algorithms used in analysis

All of the following are standards used in an audit methodology except: PCAOB COBIT COSO FASAC

FASAC

Which of the following would not be considered a prescriptive analytics technique? Multiple Choice Sensitivity Analysis Evaluating Assumptions of Future Performance Crosstabulation Analyzing Past Performance Breakeven Level in Sales What-if-analysis (marginal analysis)

Crosstabulation Analyzing Past Performance

What would you consider to be an operational KPI? Multiple Choice Inventory Shrinkage Rate Brand Equity CAPEX to Sales Ratio Revenue per Employee

Inventory Shrinkage Rate

What does KPI stand for? Multiple Choice Key performance index Key performance indicator Key paired index Key paired indicator

Key performance indicator

The most important KPIs should be placed in the: Multiple Choice bottom right corner of the page even if we are not following a strategy map template. bottom left corner of the page even if we are not following a strategy map template. top left corner of the page even if we are not following a strategy map template. top right corner of the page even if we are not following a strategy map template.

top left corner of the page even if we are not following a strategy map template.

According to the text, which of these questions are not helpful in refining a dashboard? Multiple Choice Which metric are you using most frequently to help you make decisions? Are you downloading the data to do any additional analysis after working with the dashboard, and if so, can the dashboard be improved to save those extra steps? Are there any metrics that you do not use? If so, why aren’t they helpful? Which data are the easiest to access or least costly to collect?

Which data are the easiest to access or least costly to collect?

On a Balanced Scorecard, which is not included as a component? Multiple Choice Financial Performance Customer/Stakeholder Internal Process Employee Capacity

Employee Capacity

Which of the following would be considered to be a diagnostic analytics technique in managerial accounting? Multiple Choice Summary Statistics Computation of Job Order Costing Price and Rate Variance Analysis Sales Forecasts

Price and Rate Variance Analysis

What is defined as an interactive report showing the most important metrics to help users understand how a company or an organization is performing? Multiple Choice KPI Performance metric Digital dashboard Balanced Scorecard

Digital dashboard

What would you consider to be a prescriptive analytics technique in management accounting? Multiple Choice Computation of KPIs Capital Budgeting Comparison of Actual Performance to Budgeted Performance Cash Flow Forecasts

Capital Budgeting

What would you consider to be a predictive analytics technique in management accounting? Multiple Choice Computation of Rate Variances Sales Forecasts based on Time Series Analysis Breakeven Level in Sales Computation of Product Sales in Prior Period

Sales Forecasts based on Time Series Analysis

A particular type of metric that an organization deems the most important and influential on decision-making is known as a: Multiple Choice balanced scorecard. digital dashboard. key performance indicator (KPI). performance metric.

key performance indicator (KPI).

A type of report that is made up of strategic objectives and metrics to help the organization reach its target measures in line with strategic goals is called a: Multiple Choice balanced scorecard. digital dashboard. key performance indicator (KPI). performance metric.

balanced scorecard.

An interactive report showing the most important metrics to help users understand how a company or an organization is performing is called a: Multiple Choice balanced scorecard. digital dashboard. key performance indicator (KPI). performance metric.

digital dashboard.

The balanced scorecard is comprised of four components; which of the following is not an item that should be identified for each component? objectives measures destinations initiatives

destinations

The balanced scorecard is comprised of four components, which of the following is not a component of a balanced scorecard? Multiple Choice Financial Customer Internal process External process

External process

Market share is which type of key performance indicator (KPI)? Marketing Customer Operational Financial performance

Marketing

Market growth rate is which type of key performance indicator (KPI)? Marketing Customer Operational Financial performance

Marketing

Staff advocacy score is which type of key performance indicator (KPI)? Employee performance Operational Customer Financial performance

Employee performance

Earnings before interest, taxes, depreciation, and amortization (EBITDA) is which type of key performance indicator (KPI)? Multiple Choice Employee performance Operational Marketing Financial performance

Financial performance

Operating profit margin is which type of key performance indicator (KPI)? Multiple Choice Employee performance Operational Marketing Financial performance

Financial performance

Customer turnover rate is which type of key performance indicator (KPI)? Multiple Choice Employee performance Operational Customer Financial performance

Customer

Return on innovation investment is which type of key performance indicator (KPI)? Multiple Choice Employee performance Operational Customer Financial performance

Operational

First pass yield is which type of key performance indicator (KPI)? Multiple Choice Employee performance Operational Customer Financial performance

Operational

Process downtime level is which type of key performance indicator (KPI)? Multiple Choice Employee performance Operational Customer Financial performance

Operational

Waste reduction rate is which type of key performance indicator (KPI)? Multiple Choice Employee performance Operational Environmental and social sustainability Financial performance

Environmental and social sustainability

Which of the following is an example of an environmental and social performance sustainability key performance indicator (KPI)? Multiple Choice 360-degree feedback score Process waste level Conversion rate Supply chain miles

Supply chain miles

Which of the following is an example of an employee performance key performance indicator (KPI)? Six Sigma Level Salary competitiveness ratio First contact resolution Working capital ratio

Salary competitiveness ratio

Which of the following is an example of an operational key performance indicator (KPI)? CAPEX to sales ratio Absenteeism Bradford factor Overall equipment effectiveness Product recycling rate

Overall equipment effectiveness

Which of the following is an example of a marketing key performance indicator (KPI)? Customer lifetime value Quality index Page views and bounce rate Time to market

Page views and bounce rate

In a balanced scorecard, what should be achievable goals toward which to move the metric? Multiple Choice Objectives Initiatives Measures Targets

Targets

The DuPont analysis of return on equity (ROE) includes all of the following component ratios except: Multiple Choice asset turnover. inventory turnover. equity multiplier. profit margin.

inventory turnover.

What type of ratios measure a firm’s operating efficiency? Multiple Choice DuPont ratios Liquidity ratios Activity ratios Solvency ratios

Activity ratios

Performance comparisons to a company’s own past or to its competition would be considered: Multiple Choice prescriptive analytics. descriptive analytics. predictive analytics. diagnostic analytics.

diagnostic analytics.

In which stage of the IMPACT model (introduced in Chapter 1) would the use of sparklines fit? Track outcomes Communicate insights Address and refine results Perform test plan

Communicate insights

What computerized technique would be used to perform sentiment analysis on an annual accounting report? Multiple Choice Text mining Sentiment mining Textual analysis Decision trees

Text mining

Determining how sensitive a stock’s intrinsic value to assumptions and estimates made would be an example of: Multiple Choice diagnostic analytics. predictive analytics. descriptive analytics. prescriptive analytics.

prescriptive analytics.

XBRL stands for: Multiple Choice Extensible Business Reporting Language. Extensive Business Reporting Language. XML Business Reporting Language. Excel Business Reporting Language.

Extensible Business Reporting Language.

Which term defines and describes each XBRL financial element? Multiple Choice Data dictionary Descriptive statistics XBRL-GL Taxonomy

Taxonomy

Which of the following describes the process that allows data to be quickly transmitted and received, and serves as an input for financial analysts valuing a company? Multiple Choice XBRL tagging XBRL taxonomy XBRL-GL XBRL dictionary

XBRL tagging

What is the name of the output from data vendors to help compare companies using different XBRL tags for revenue? Multiple Choice XBRL taxonomy Data assimilation Consonant tagging Standardized metrics

Standardized metrics

XBRL stands for: Multiple Choice eXtended Business Reporting Language and is a type of HTML. eXtended Business Reporting Language and is a type of XML. eXtensible Business Reporting Language and is a type of XML. eXtensible Business Reporting Language and is a type of HTML.

eXtensible Business Reporting Language and is a type of XML.

XBRL is used for reporting financial elements and: Multiple Choice Tagging Composing Representing Summarizing

Tagging

The Securities and Exchange Commission requires all public company filers to use XBRL tagging in all of the following financial statements except: Multiple Choice Balance Sheet Statement of Comprehensive Income Statement of Cash Flows Statement of Changes in Working Capital

Statement of Changes in Working Capital

What does XBRL use to help describe each key data element? Multiple Choice Taxonomy Data dictionary Schema Terminology

Taxonomy

Which of the following is not a type of tagging with XBRL? Multiple Choice Years Figures Hieroglyphs Text

Hieroglyphs

According to the authors, the use of XBRL tags allows data to be quickly: Multiple Choice cleaned and prepared. transformed and received. sorted and reconfigured. transmitted and received.

transmitted and received.

Which of the following statements is false? Multiple Choice Firms can make their own tags if they feel their financial data item does not fit within the existing framework. Sometimes very similar financial data items have unique tags, making direct comparisons between companies difficult. Detailed tagging of the numbers included in the footnotes is required. XBRL uses a taxonomy to help define and describe each key data element, but it is not capable of defining relationships between each element.

XBRL uses a taxonomy to help define and describe each key data element, but it is not capable of defining relationships between each element.

According to the text, research finds that as the use of negative words in a company’s 10-K increases, the stock price is likely to: Multiple Choice increase. decrease. not be affected. not be determinable.

decrease.

Liquidity ratios measure a firm’s: Multiple Choice ability to pay short-term obligations using current assets. operating efficiency. ability to pay their debts and stay in business. ability to generate earnings relative expenses.

ability to pay short-term obligations using current assets.

Activity ratios measure a firm’s: Multiple Choice ability to pay short-term obligations using current assets. operating efficiency. ability to pay their debts and stay in business. ability to generate earnings relative to its expenses.

operating efficiency.

Profitability ratios measure a firm’s: Multiple Choice ability to pay short-term obligations using current assets. operating efficiency. ability to pay their debts and stay in business. ability to generate earnings relative to its expenses.

ability to generate earnings relative to its expenses.

Solvency ratios measure a firm’s: Multiple Choice ability to pay short-term obligations using current assets. operating efficiency. ability to pay their debts and stay in business. ability to generate earnings relative to its expenses.

ability to pay their debts and stay in business.

Profit margin is an example of which type of ratio? Multiple Choice Solvency ratio Profitability ratio Liquidity ratio Activity ratio

Profitability ratio

Return on assets (ROA) is an example of which type of ratio? Multiple Choice Solvency ratio Profitability ratio Liquidity ratio Activity ratio

Profitability ratio

Long-term debt to equity ratios are examples of which type of ratio? Multiple Choice Solvency ratio Profitability ratio Liquidity ratio Activity ratio

Solvency ratio

Debt-to-equity (D/E) ratio is an example of which type of ratio? Multiple Choice Solvency ratio Profitability ratio Liquidity ratio Activity ratio

Solvency ratio

Inventory turnover ratio is an example of which type of ratio? Multiple Choice Solvency ratio Profitability ratio Liquidity ratio Activity ratio

Activity ratio

The quick ratio is an example of which type of ratio? Multiple Choice Solvency ratio Profitability ratio Liquidity ratio Activity ratio

Liquidity ratio

The acid-test ratio is an example of which type of ratio? Multiple Choice Solvency ratio Profitability ratio Liquidity ratio Activity ratio

Liquidity ratio

The method of assessing text sentiment in a block of text that involves counting the number of words of a certain type from a financial dictionary is called: Multiple Choice the dictionary method. the overlap method. the word count method. the sentiment method.

the overlap method.

In which stage of the IMPACT model (introduced in Chapter 1) would the use of tax cockpits fit? Multiple Choice Track outcomes Master the data Address and refine results Perform test plan

Track outcomes

Tax departments interested in maintaining their own data are likely to have their own: Multiple Choice tax reporting system. tax data mart. tax dashboard. tax analytics.

tax data mart

According to the textbook, an example of a tax efficiency and effectiveness key performance indicator (KPI) would be: Multiple Choice number of audits closed. Effective tax rate (ETR) over time. number of resubmitted tax returns due to errors. amount of time spent on compliance versus strategic activities.

amount of time spent on compliance versus strategic activities.

According to the textbook, an example of a tax sustainability key performance indicator (KPI) would be: Multiple Choice frequency of concerns pertaining to the organization’s tax position. level of job satisfaction of the tax personnel. levels of technology and tax training. number of audits closed and significance of assessment over time.

number of audits closed and significance of assessment over time.

According to the textbook, an example of a tax cost key performance indicator (KPI) would be: Multiple Choice employee turnover of the tax personnel. levels of technology and tax training. effective tax rate (ETR). levels of late filing or error penalties.

effective tax rate (ETR).

The task of tax accountants and tax departments to minimize the amount of taxes paid in the future is called: Multiple Choice tax planning. tax compliance. tax minimization. tax sustainability.

tax planning.

According to the textbook, an example of a tax risk key performance indicator (KPI) would be: Multiple Choice employee turnover of the tax personnel. levels of technology and tax training. effective tax rate (ETR). levels of late filing or error penalties.

levels of late filing or error penalties.

What allows tax departments to view multiple years, periods, jurisdictions (state, federal, or international, etc.), and differing scenarios of data, typically through use of a dashboard? Multiple Choice Tax data visualizations Tax data warehouses Tax compliance data Tax planning

Tax data visualizations

Predictive analysis of potential tax liability and the formulation of a plan to reduce the amount of taxes paid is defined as: Multiple Choice tax data analytics tax data warehouses tax compliance data tax planning

tax planning

The evaluation of the impact of different tax scenarios on various outcome measures including the amount of taxable income or tax paid is called: Multiple Choice tax visualizations what-if scenario analysis tax compliance data warehousing

what-if scenario analysis

A data warehouse is data kept for more general purposes, but: Multiple Choice a data mart is kept for more specific purposes. a data store is kept for more specific purposes. a database is kept for more specific purposes. a data dump is kept for more specific purposes.

a data mart is kept for more specific purposes.

What is defined as the analysis of potential tax liability and formulation of a plan to reduce the amount of taxes paid? Multiple Choice What-if scenario tax analysis Tax planning Tax compliance Tax contingency planning

Tax planning

What Internal Revenue Service (IRS) algorithm pulls historical data for average amount and type of deductions related to income level and predicts the likelihood of underreported income? Multiple Choice Discriminant Function Algorithm Profiling Algorithm Underreporting Algorithm Tax Evaders Algorithm

Discriminant Function Algorithm

Levels of technology or tax training would be an example of which kind of key performance indicator (KPI)? Multiple Choice Tax cost Tax risk Tax efficiency and effectiveness Tax sustainability

Tax efficiency and effectiveness

Effect of loss carry-forwards would be an example of which kind of key performance indicator (KPI)? Multiple Choice Tax cost Tax risk Tax efficiency and effectiveness Tax sustainability

Tax cost

Level of job satisfaction of the tax personnel would be an example of which kind of key performance indicator (KPI)? Multiple Choice Tax cost Tax risk Tax efficiency and effectiveness Tax sustainability

Tax efficiency and effectiveness

All of the following are included in a company's data warehouse except: Multiple Choice Enterprise data Reporting data Tax tables Tax key performance indicators (KPIs)

Tax key performance indicators (KPIs)

Data analytics is used to qualify for research and development (R&D) tax credits by: Multiple Choice using data analytics to provide supporting documentation of R&D expenditures made. including the cost to perform data analytics as qualifying R&D expenditures. using data analytics to find additional qualifying R&D expenditures. evaluating whether existing R&D expenditures qualify for tax credit.

using data analytics to provide supporting documentation of R&D expenditures made.

According to the text, which of the following questions would not be involved with tax planning? Multiple Choice What will be the impact of a new tax rate on our tax liability? Are we minimizing our tax burden by tracking all eligible deductible expenses and transactions that qualify for tax credits? What would be the impact of relocating our headquarters to a different city, state or country? How to minimize taxes on the tax return on the fiscal year just ended?

How to minimize taxes on the tax return on the fiscal year just ended?

Which type of tax analytics provide insight by creating a trend analysis for sales and use tax paid in different locations, which would help identify seasonal patterns or abnormal transaction volume that warrant further investigation? Multiple Choice Descriptive analytics Diagnostic analytics Predictive analytics Prescriptive analytics

Diagnostic analytics

Which type of tax analytics provide insight into the current processes, policies, and calculations related to determining tax liability? Multiple Choice Descriptive analytics Diagnostic analytics Predictive analytics Prescriptive analytics

Descriptive analytics

Which type of tax analytics provide insight which might help identify items of interest, such as high tax areas or excluded transactions? Multiple Choice Descriptive analytics Diagnostic analytics Predictive analytics Prescriptive analytics

Diagnostic analytics

Which type of tax analytics uses ancillary data, including growth rates, trends, and other identified patterns, aids in the usefulness of regression and what-if analyses? Multiple Choice Descriptive analytics Diagnostic analytics Predictive analytics Prescriptive analytics

Predictive analytics

Which type of tax analysis tests the impact of various input data on an expected output? Multiple Choice What-if Scenario Analysis Goal Seek Analysis Cash Flow Analysis What-if Case Analysis

What-if Scenario Analysis

The effective tax rate over time would be an example of which kind of key performance indicator (KPI)? Multiple Choice Tax cost Tax risk Tax efficiency and effectiveness Tax sustainability

Tax sustainability

The amount of time spent on compliance versus strategic activities would be an example of which kind of key performance indicator (KPI)? Multiple Choice Tax cost Tax risk Tax efficiency and effectiveness Tax sustainability

Tax sustainability

Tax-focused key performance indicators (KPIs) appear on dashboards or cockpits, consistent with which components of the IMPACT model? Multiple Choice Identify the Question Master the Data Perform the Text Communicate Insights

Communicate Insights

Tax sustainability key performance indicators (KPIs) appear on dashboards or cockpits, consistent with which components of the IMPACT model? Multiple Choice Track Outcomes Identify the Question Master the Data Communicate Insights

Track Outcomes

Querying the tax data mart would be consistent with which components of the IMPACT model? Multiple Choice Tracking Outcomes Perform the Analysis Identify the Question Communicate Insights

Tracking Outcomes

The frequency of concerns pertaining to the organization’s tax position is an example of which kind of key performance indicator (KPI)? Multiple Choice Tax cost Tax risk Tax efficiency and effectiveness Tax sustainability

Tax risk

Which items would be currently out of the scope of Data Analytics? Multiple Choice Direct observation of processes Evaluation of time stamps to evaluate workflow Evaluation of phantom vendors Duplicate payment of invoices

Direct observation of processes

Which audit technique is used to test completeness? Multiple Choice Benford’s law Sequence check Summary statistics Drill-down

Sequence check

Benford’s law suggests that the first digit of naturally occurring numerical datasets follow an expected distribution where: Multiple Choice the leading digit of 4 is more common than 3. the leading digit of 9 is more common than 2. the leading digit of 8 is more common than 9. the leading digit of 6 is more common than 5.

the leading digit of 8 is more common than 9.

The determinants for sample size include all of the following except: Multiple Choice confidence level. tolerable misstatement. potential risk of account. estimated misstatement.

potential risk of account.

CAATs are automated scripts that can be used to validate data, test controls, and enable substantive testing of transaction details or account balances and generate supporting evidence for the audit. What does CAAT stand for? Multiple Choice Computer-aided audit techniques Computer-assisted audit techniques Computerized audit and accounting techniques Computerized audit aids and tests

Computer-assisted audit techniques

Which type of audit analytics might be used to find hidden patterns or variables linked to abnormal behavior? Multiple Choice Prescriptive analytics Abnormal analytics Diagnostic or Predictive analytics Descriptive analytics

Diagnostic or Predictive analytics

What describes finding correspondences between at least two types of text or entries that may not match perfectly? Multiple Choice Incomplete linkages Algorithmic matching Fuzzy matching Incomplete matching

Fuzzy matching

Which testing approach would be used to predict whether certain cases should be evaluated as having fraud or no fraud? Multiple Choice Classification Probability Sentiment analysis Artificial intelligence

Classification

Which testing approach would be useful in assessing the value of inventory shrinkage given multiple environmental factors? Multiple Choice Probability Sentiment analysis Regression Applied statistics

Regression

What type of analysis would help auditors find missing checks? Multiple Choice Sequence check Benford’s law analysis Fuzzy matching Decision support systems

Sequence check

Which of the following statements is true? Multiple Choice Monetary unit sampling more likely to pull accounts with small balances. Monetary unit sampling allows auditors to evaluate account balances. Prescriptive analytics attempt to find hidden patterns or variables. Predictive analytics use machine learning and artificial intelligence.

Monetary unit sampling allows auditors to evaluate account balances.

Which of the following statements is false? Multiple Choice Predictive analytics attempt to find hidden patterns or variables. Regression allows an auditor to predict a specific dependent value based on independent variable inputs. Classification in auditing is mainly focused on risk assessment. Monetary unit sampling more likely to pull accounts with small balances.

Monetary unit sampling more likely to pull accounts with small balances.

Which of the following is the best choice as the unique identifier for each sales order? Multiple Choice Item# Shipping# Purchase_Order# Sales_Order#

Sales_Order#

Which of the following is an example of descriptive analytics? Multiple Choice Summary statistics Z-score Similarity matching Fuzzy matching

Summary statistics

Which of the following is an example of predictive analytics? Multiple Choice Classification Z-score Decision support systems Diagnostic

Classification

Which of the following is not an example of predictive analytics? Multiple Choice Classification Regression Probability Artificial intelligence

Artificial intelligence

Which type of audit analytics might be used to summarize activity or master data based on certain attributes? Multiple Choice Prescriptive analytics Predictive analytics Diagnostic analytics Descriptive analytics

Descriptive analytics

Which type of audit analytics might be used to detect correlations and patterns of interest? Multiple Choice Prescriptive analytics Predictive analytics Diagnostic analytics Descriptive analytics

Diagnostic analytics

Which type of audit analytics might be used to identify common attributes or patterns that may be used to identify similar activity? Multiple Choice Prescriptive analytics Predictive analytics Diagnostic analytics Descriptive analytics

Predictive analytics

Which type of audit analytics might be used to recommend action based on previously observed actions? Multiple Choice Prescriptive analytics Predictive analytics Diagnostic analytics Descriptive analytics

Prescriptive analytics

An example of descriptive analytics is to identify largest or smallest values and is referred to as: Multiple Choice summary statistics. age analysis monetary unit sampling sorting

sorting

Assigning a value to a number based on how many standard deviations it stands from its mean is called: Multiple Choice a Z-score. a T-test. regression analysis. classification analysis.

a Z-score.

Exploring the details behind the values is referred to as: Multiple Choice regression analysis. clustering. drill-down. classification analysis.

drill-down.

The identification of transactions or users with non-typical activity based on the distribution of first digits and is called: Multiple Choice a drill-down. fraud detection. Benford’s Law. monetary unit sampling.

Benford’s Law.

Detecting gaps in records and duplicate entries is referred to as: Multiple Choice sequence check. stratification. gap analysis. Benford’s law.

sequence check.

Grouping records by non-obvious similarities is referred to as: Multiple Choice clustering. regression. classification. stratification.

clustering.

Predicting specific dependent values based on independent variable inputs is referred to as: Multiple Choice correlation. regression. classification. time series.

regression.

Using a rank score to evaluate the strength of classification is referred to as probability and is an example of: Multiple Choice diagnostic analytics. descriptive analytics. prescriptive analytics. predictive analytics.

predictive analytics

Evaluating the tone of text to forecast an outcome is referred to as sentiment analysis and is an example of: Multiple Choice diagnostic analytics. descriptive analytics. prescriptive analytics. predictive analytics.

predictive analytics.

Benford’s Law states that: Multiple Choice common tables and fields are needed by auditors to perform common audit tasks. analytics must be used to looks for correlations or patterns of interest in the data. the number of transistors in a dense integrated circuit doubles approximately every two years. in naturally occurring collections of numbers, the leading significant digit is likely to follow a theoretical distribution.

in naturally occurring collections of numbers, the leading significant digit is likely to follow a theoretical distribution.