analytics
use info data to make decisions
- big data
-business intelligence
all about decision making
- answer questions
- develop patterns
* everything to make better approved decisions for business
dynamic
what change can be made now?
data analytics
answer questions, look for unknown patterns and things to help make better/ approve decisions for business
big data
datasets too large and complex
volume
size
velocity
frequency
–> how often new posts on social media
variety
different types of media
–> pics, texts, videos
veracity
quality
–> does it come from an unknown source?
if company A and B are in the same industry, but company A has more data to work with and embraces this to drive decisions
it has a, advantage over company B
data analytics affect on auditing
- enhance audit quality
–> new form of gathering evidence - enabled enhaced audits, expanded services, and added value to clients
- external auditors stay engaged beyond the audit
data analytics affect on financial reporting
- accountants make better estimates of collectability, write-downs
- managers better understand bus env through social media
- analysts identify risks and opportunities through analysis of internet searches
data analytics affect on tax
- optimization models, more complex algorithms and optimization models
- development of sophisticated tax planning strategies
- managers understand tax consequences of international transactions, investment, mergers, and acquisitions
- organization understands tax tables and other tax data to aid compliance
IMPACT model
- identify the questions
- master the data
- perform the test plan
- address and refine results
- communicate insights
- track outcomes
identify the questions
- issue driven
- what are we trying to solve?
master the data
- data cleansing/ scrubbing
- 50-90% analytic projects is concerned with mastering the data
master the data – data validation and completeness
make sure everything went correctly from point A to point B
perform the test plan
select appropriate model to find target variable
- classification
- regression
- similarity matching
- clustering
- co-occurrence grouping
- profiling
address and refine results
identify issues with analysis, possible issues, and refine model
–> project wont come out perfect from first try
communicate insights
communicate actual results to people effectively and clearly
track outcomes
track results, see if our model actually works
accountants need to be able to:
- understand question and articulate it
- communicate results
- communicate with data scientists
accountants need to be comfortable with:
- data scrubbing / data prep
- data quality
- descriptive data analysis
- data analysis through data manipulation
- define and address problems through statistical analysis
- data visualization and data reporting
