Appendix B Flashcards
What are the two types of data visualisation?
- Exploratory: explore data pre-detailed analysis
- Explainatory: explain data to audience in orderly fashion
What are the criteria of data sets to be considered big data?
- Too large for traditional methods
- Variety of data types
- Data amount increases quickly
- Uncertain accuracy and reliability
What are the types of data analytics?
- Descriptive: What happend?
- Prescriptive: what should have happened?
- Diagnostic: why did it happen?
- Predictive: what will happen?
What are the three main attributes of Big Data?
- Velocity (speed)
- Variety (multiple data types)
- Volume (amount of data)
What is the audit risk?
risk that auditor disapproves misstated financial statements.
What is data analytics?
Examining data sets to discover patterns and derive useful information
What are the different types of variety in Big Data?
- Structured: colums and rows
- Semi structured: No rigid struture but some defining details
- Unstructured: photos and videos
What is a double materiality assessment?
Assessment of the company’s influence on society and the influence of society on the company’s operations, procedures etc.
What does your chart type depend on?
It depends on what you want to show:
1. Comparison
2. Composition
3. Distribution
4. Relationship
What are the implications of Blockchain technology for the accounting profession?
- All transactions are automatically confirmed and recorded
- Financial statements can be updated continuously.
Quickly explain how Blockchain works.
- Open, decentralized ledger that records transactions and stores them on nodes
- Transactions are recorded in block with date, amount and cryptographic signature, then added to the chain of blocks.
- This way it’s prone to fraud because changes on one node are visible to all nodes.
What are the different types of audit opinions?
- Unqualified: true and fire view (good)
- qualified opinion with limitation: certain item not in IFRS accord/ unable to audit item
- Qualified/adverse: Financial statements are misstated
- Disclaimer of opinion: auditor unable to complete accurate audit report
What is the audit process?
- Audit planning (summer)
- Audit of systems and procedures (interim audit in autumn)
- Final/substantive audit in winter/spring
- Audit reporting in winter/spring
What is the risk-based accounting principle?
The auditor spends the most amount of time and effort on the areas of the business that are the riskiest.
What is the materiality treshold?
Big companies have too many transactions to confirm all and make sure financial statements are fully correct. This treshold means that acountants can’t be blamed for mistakes under this treshold.
