Broward College

ACCOUNTING ACG3842

Chapter 1
Using Data Analytics to Ask and Answer Accounting Questions
Page 2
A Look at This Chapter:
In this chapter, we emphasize how computerization and the availability of data is changing the role of the accountant as
information provider. We talk about how the accounting profession must change to complement the power of
computerization and the plethora of data available. We use Bloom’s Taxonomy to discuss the higher-order skills accountants
increasingly need to develop. We conclude by proposing the AMPS model as a framework for performing Data Analytics,
which is consistent with accountants developing an analytics mindset. Finally, we explore the type and scope of questions
that decision makers ask as the first component of the AMPS model.
A Look Ahead:
The availability of data for business and accounting is changing the business world. To address accounting questions, we must
know what data is available. Mastering the data is the second component of the AMPS model. Specifically, in Chapter 2, we
introduce the data sources that you will see in your accounting career—whether it is generated and owned by the company
(like from a financial reporting system or supply chain system) or comes from outside the company. We discuss how data can
inform accounting decision making.
Page 3
Developing an Analytics Mindset
Mateusz_Szymanski/Shutterstock
EY argues that its professionals and its new hires need an analytics mindset.
So, what is an analytics mindset?
An analytics mindset is the ability to:
 Ask the right questions.
 Extract, transform, and load relevant data.
 Apply appropriate data analytic techniques.
 Interpret and share the results with stakeholders.
In this text, we will focus on learning appropriate data analytic techniques that can be used to analyze data, which we
formally refer to as the AMPS model. This analytics mindset serves as a way to see how the Data Analytics process can help
you think through the types of questions that can be addressed and answered with data. As you continue in your college
studies, you will increasingly learn other ways of developing the critical analytics mindset that will serve you throughout your
professional career.
Source: The Analytics Mindset, Ernst & Young Foundation: E&Y Academic Resource Center (EYARC), 2017,
http://aaahq.org/Education/Web