In a manufacturing organization, all sales prices are determined centrally and are electronically sent to the distribution centers to update their sales price tables.
Any pricing deviations must be approved by central headquarters. To determine how this process is functioning, an internal auditor should:
To determine how the sales price determination process is functioning in a manufacturing organization, it is essential to document the flow of sales price information and understand how the sales price table is accessed and updated. This approach ensures a comprehensive view of how prices are set, transmitted, and maintained, and helps identify any discrepancies or areas for improvement in the process.
D is how price data are accessed, and here it is wanted how process is functioning
to identify whether there is a segregation of duties control in place or not. (D) is only concerned about who accesses the data, and disregards the price updating process.
Can somebody explain why not D?