Acct 318 Ch 7

Performed to investigate the underlying cause that cannot be answered by simply looking at the descriptive data

• Descriptive

• Diagnostic

• Prescriptive

• Predictive

Why did it happen?

What are the reasons for the past result?

Can we explain why it happened?

• Diagnostic

• Descriptive

• Predictive

• Prescriptive

What are broad categories of Diagnostic

• Anomalies

  Outliers

• Regression

• Fuzzy Matching

• Histogram

Something that departs or deviates from the expected

• Outlier

• Anomaly

• Recordkeeping

• Custody

According to Benford’s law what is expectation for the percentage of times that the first digit of a number is a 9?

• 5.12

• 4.58

• 5.80

• 30.10

What is an example of a cash reconciling item of an item recorded in the general ledger but not yet recorded in the bank statement

• Bank service fee

• Interest earned on notes held by the bank

• Outstanding checks

• NSF checks

Which cash reconciling item could potentially affect either the bank statement or the general ledger

• Error

• Interest earned on notes held by the bank

• Outstanding checks

• NSF Checks

Which of the following cab potentially find gaps in the check numbers written

• Fuzzy matching

• Test if duplicates

• Benford law

• Sequence check

Diagnostic analytics which uncovers previously unknown linkages, patterns, and relationships between variables is know as which of the following

• Outlier / anomaly detection

• Regression

• Drill down detailed

• Classification

The appropriate test to compare one sample to another sample to see if one is greater than another in some way is called

• Regression

• Two sample t test of a difference in means

• One sample t test of a difference in means

• Chi squared test of a difference in means