Question
Financial information is designed to tell a story of how successful or how unsuccessful a business is running. An accountants main goal is to understand
Financial information is designed to tell a story of how successful or how unsuccessful a business is running. An accountants main goal is to understand what the data is telling you and be able to make decisions based on that story. Having access to a large amount of data can be overwhelming but it can also give an accountant access to information that helps explain changes in behavior. An auditor uses different types of data analytics to review financial statements of a company to determine if there are any issues with data integrity. A tax accountant might use data analytics to make decisions that will result in the biggest tax benefit. A corporate accountant may use data analytics to make strategic decisions that better align with the target market. The WSJ article that I chose talks about corporate insiders that made a decision to purchase their own companies stock (Miao, 2023). There are differing opinions on why someone might want to purchase more of their own stock (Miao, 2023). The company may have a lot of confidence in the company and expect big returns which may also build consumer confidence in the company (Miao, 2023). There is also an aspect that maybe the corporate insiders are just trying to keep the stock prices from dropping so low that investors start to lose confidence in the company and take their investments elsewhere (Miao, 2023). The article didnt mention data analytics specifically, but a company could analyze the market data to draw conclusions on if companies are truly expected to bounce back or if they are just trying to stay afloat in hopes the market will recover
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