Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 49

New credit policies have been implemented in an automated order-entry system to improve the collection of receivables. Sales management has compiled several examples that show decreased sales and delayed order entry, and contends that these examples are a direct result of the new credit-policy constraints. Sales management's data and information provide.

Answer options

• A. Feedback control data.
• B. Irrelevant and argumentative information.
• C. Evidence that the new credit policies do not meet the stated corporate objective to improve collections.
• D. A statistically valid conclusion about the impact of the new credit policies on customer goodwill.

Correct answer: A

Explanation

The correct answer is A because feedback control data is used to assess the effectiveness of changes made, such as the new credit policies. Options B, C, and D do not accurately describe the nature of the evidence provided by sales management, as they either dismiss the relevance of the data or misinterpret its implications.