An organization was recently notified by its regulatory body of significant discrepancies in its reporting data.
A preliminary investigation revealed that the discrepancies were caused by problems with the organization's data quality.
Management has directed the data quality team to enhance their program.
The audit committee has asked internal audit to be advisors to the process.
To ensure that management concerns are addressed, which data set should internal audit recommend be reviewed FIRST?
Click on the arrows to vote for the correct answer
A. B. C. D.A.
When an organization is notified by a regulatory body of significant discrepancies in its reporting data, it is essential that the organization conducts a thorough investigation to determine the root cause of the problem. A preliminary investigation has already revealed that the discrepancies were caused by problems with the organization's data quality.
In response to this, management has directed the data quality team to enhance their program. The audit committee has also asked internal audit to be advisors to the process to ensure that management concerns are addressed.
To determine which data set should internal audit recommend be reviewed first, it is important to consider the potential impact of each data set on the organization's operations and compliance.
Option A: Data impacting business objectives
Data impacting business objectives is critical to the success of an organization, and any discrepancies in this data could have a significant impact on the organization's ability to achieve its objectives. However, since the regulatory body has already identified significant discrepancies in the reporting data, it is likely that this data has already been reviewed.
Option B: Data supporting financial statements
Data supporting financial statements is another critical data set that must be accurate and reliable. However, it is important to note that the regulatory body has already identified significant discrepancies in the organization's reporting data, which may include financial data.
Option C: Data reported to the regulatory body
Since the regulatory body has already identified significant discrepancies in the organization's reporting data, it is important to review the data reported to the regulatory body first. This data set is likely to be of particular interest to the audit committee, as it is critical for compliance purposes.
Option D: Data with customer personal information
Data with customer personal information is also critical, as any discrepancies in this data could have legal and reputational implications for the organization. However, since the regulatory body has already identified significant discrepancies in the reporting data, it is unlikely that this data set is the primary cause of the problem.
In conclusion, to ensure that management concerns are addressed, internal audit should recommend that the data reported to the regulatory body be reviewed first, as it is critical for compliance purposes and has already been identified as a significant issue.