Exam IIA-CIA-Part1 topic 3 question 61 discussion

Actual exam question from IIA's IIA-CIA-Part1

Question #: 61
Topic #: 3

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:

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.

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Suggested Answer: A 🗳️

by NadiaD at Feb. 17, 2021, 9:20 a.m.

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thabash

1 year, 4 months ago

the credit department made new procedure for increasnig the credit limit and get more confirmation and promissory note for an example before giving the credit to the customer, customers rejected to follow the new procedures, so sales department complained to management with prove from customers like emails, that because of the new credit procedure the sales reduced, this call feedback on the new procedure applied.

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NadiaD

1 year, 5 months ago

Why is it A?

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John1237

1 month, 3 weeks ago

Feedback control because sales management is interested in the effectiveness of the new credit policy. There is a comparison between new credit policies and actual data and information that show decreased sales and delayed order entry (resulting from new credit-policy constraints).

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Exam IIA-CIA-Part1 topic 3 question 61 discussion

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thabash

NadiaD

John1237

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