Analyzing Revenue Loss in Sales and Purchasing System | CISA Exam Prep

Determining Revenue Loss: Sales and Purchasing System Analysis

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Question

An IS auditor is reviewing an organization's sales and purchasing system due to ongoing data quality issues.

An analysis of which of the following would provide the MOST useful information to determine the revenue loss?

Answers

Explanations

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A. B. C. D.

D.

Out of the given options, option D - "Correlation between data errors and loss in value of transactions" would provide the most useful information to determine the revenue loss in an organization's sales and purchasing system.

Explanation:

The given scenario is that an IS auditor is reviewing an organization's sales and purchasing system due to ongoing data quality issues that are causing revenue loss. In this case, the IS auditor needs to identify the factors that are causing the revenue loss in the system, and determine the extent of the revenue loss caused by these factors.

Option A - "Correlation between the number of issues and average downtime" is not a relevant factor in determining the revenue loss caused by data quality issues. Although it may be useful to identify the system's downtime, it does not provide any information about the revenue loss.

Option B - "Cost of implementing data validation controls within the system" is also not directly relevant to determining the revenue loss caused by data quality issues. Although it may be useful to identify the cost of implementing data validation controls, it does not provide any information about the actual revenue loss caused by the data quality issues.

Option C - "Comparison of the cost of data acquisition and loss in sales revenue" is also not directly relevant to determining the revenue loss caused by data quality issues. Although it may be useful to identify the cost of data acquisition, it does not provide any information about the actual revenue loss caused by the data quality issues.

Option D - "Correlation between data errors and loss in value of transactions" is the most relevant factor in determining the revenue loss caused by data quality issues. By analyzing the correlation between data errors and loss in value of transactions, the IS auditor can identify the extent of the revenue loss caused by the data quality issues and determine the necessary measures to address the issues.

In conclusion, option D - "Correlation between data errors and loss in value of transactions" would provide the most useful information to determine the revenue loss caused by ongoing data quality issues in an organization's sales and purchasing system.