PA/Stats Basics
The purpose of this analysis is to identify information useful for decision making.
The role of the accountant is shifting from repetitive functions towards an ________ based function.
What is analysis?
List the three interested parties we discussed in our presentation.
What is:
1. Educators
2. Professionals
3. Firms
The primary goal of integrating PA/Stats within the audit process.
What is to improve audit quality and efficiency
The science of collecting and analyzing large quantities of numerical data.
What is Statistics?
In 2024, the CPA exam is changing to include a focus on ______. (2 possible answers)
What is technology/business analytics?
Professionals always have something new to _______.
What is master? (new skills and learning opportunities within the accounting profession)
True or False: PA can be used to determine additional procedures to be performed.
True
The first step in the predictive analytics process.
What is defining the project?
Accountants need to enhance their professional _______, ______, and ______ thinking.
What is skepticism, judgement, and critical thinking
Define the acronym PPA and the firm that has adopted this analytical model.
What is Predictive Project Analytics; Deloitte.
This audit procedure projects its results from a part onto a whole.
What is Sampling
This component of the PA value chain functions as a perpetual oversight over data streams.
What is monitoring?
List two actions carried out by accountants to better understand the context of the business.
What are processing business problems and formulating key questions.
Define the use of Predictive Project Analytics at Deloitte.
What is to track, predict, and understand real-time status and risk.
This data output tool can allow auditors to identify relationships between variables, typically in the form of a scatterplot.
What is Regression Analysis
What fundamental assumption with regards to the use of statistics in accounting (specifically audit) is made?
What is normal distribution?
Name one word used to describe an action to analyze data that an accountant should not possess as an individual characteristic.
What is manipulate?
List five things that educators can do to better prepare accounting students for the demanding job market.
1. Accounting educators will need to embrace the changing landscape of accounting technology and adapt to effectively prepare their accounting students for their future careers.
2. Accounting educators must align, adapt and respond to advances in technology so their accounting graduates are competitive in the accounting job market
3. They have the opportunity to bring real world resources into their classrooms and in their curriculum.
4. Accounting firms provide supplemental lessons and related classroom tools and solutions to professors that adopt into their coursework.
5. Hands-on learning opportunities that allow accounting graduates practical and applied experience with today’s accounting technologies.
What are the four areas of the audit that analytics are used in?
1. Risk Assessment
2. Test of Controls
3. Substantive Procedures
4. Conclusions