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Week 5 Tutorial Questions - Chapter 5&17

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18 views

Week 5 Tutorial Questions - Chapter 5&17

Uploaded by

joehe2625
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CHAPTER 5

INTRODUCTION TO DATA ANALYTICS IN ACCOUNTING

1. The first step of an analytics mindset is to ask the right questions. How do you
learn how to ask the right questions? How would you teach someone else how to
ask the right questions?

2. The end of this chapter suggests that data analytics are not always appropriate
for a decision context. Identify three unique business situations for which data
analytics may not be appropriate. Identify why data analytics are not
appropriate in these situations and how a decision maker should make their
decision without using data.

3. For each of the following situations, indicate whether the analysis is an example
of a descriptive analytic, diagnostic analytic, predictive analytic, or prescriptive
analytic.

a. An accounting firm is trying to understand if its external audit fees are appropriate.
They compute a regression using public data from all companies in their industry to
understand the factors associated with higher audit.

b. A self-driving car company uses artificial intelligence to help clean its historic social
media data so they can analyze trends.

c. An airline downloads weather data for the past 10 years to help build a model that will
estimate future fuel usage for flights.

d. A shipyard company runs a computer simulation of how a tsunami would damage its
shipyards, computing damages in terms of destruction and lost production time.

e. An online retail company tracks past customer purchases. Based on the amount
customers previously spent, the program automatically computes purchase discounts
for current customer purchases to build loyalty.

f. An all-you-can-eat restaurant uses automated conveyor belts to bring cold food to the
chefs for preparation. The conveyor belts bring the food to the chefs based on
algorithms that monitor the number of people entering and leaving the restaurant.
g. A large manufacturer of farm equipment continuously analyzes data sent from engine
sensors to understand how load, temperature, and other factors influence engine
failure.

h. A small tax services business provides its financial statements to a bank to get a loan
so it can buy a new building to grow its business.

CHAPTER 17

THE HUMAN RESOURCES MANAGEMENT/PAYROLL CYCLE

1. Many organizations outsource their HRM functions to reduce organizational


overhead, have access to a wider range of benefits, and free up computing
resources. What are the potential pitfalls that organizations need to be aware of
before deciding to outsource HRM functions?

2. What internal control procedure(s) would be most effective in preventing the


following errors or fraudulent acts?

a. The company was fined by the governmental tax authorities for incorrect tax
payments.

b. A retired employee was not removed as current employee from the payroll master
file. The retired employee’s payment method was changed to EFT and the
banking details updated to reflect that of a payroll clerks’ friend.

c. The cashier signed a second payroll check to be paid from the organization’s
regular bank account for a friend in debt.

d. A senior staff member on the assembly line is responsible for checking time card
data for all assembly line workers on the production floor. When overtime is
calculated, several of his friends receive higher wages than the other workers.

e. Productivity during the first 15 minutes and the last 15 minutes of every shift was
found to be much lower than the productivity during the remainder of the shift.
Employees indicated that there was often a bottleneck at the time clock, which
caused them to waste time.
f. When overtime hours worked over the weekend were captured from the time
cards that were submitted, an error occurred and one employee was not paid
overtime while another was overpaid due to a data entry error where two digits
were transposed in the employee number: 17682 was entered as 17862, causing
employee 17682 to not receive overtime payment and employee 17862 receiving
his overtime as well as employee 17682’s overtime.

g. An organization installed a new payroll system and hired a payroll clerk. When
the new payroll clerk entered an employee’s name (assuming she was an existing
employee), the payroll system prompted the payroll clerk whether a new
employee record should be created. The payroll clerk created a new record.

h. An employee managed to use the query function of the employee database to


determine the salary of another employee in her department.

i. The payroll master file was corrupted and when the on-site backup copy was
restored, it also turned out to be corrupt.

j. A company needed to find a suitable candidate to fill their Chief Security Officer
position. An employee in HR managed to get the father of his best friend
appointed to this position. The friend’s father had a criminal record.

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