Exam IIA-CIA-Part1 All QuestionsBrowse all questions from this exam
Go to Exam
Question 6

A high-volume retailer of consumer goods has used point-of-sale data to record sales and update inventory records for several years. When price changes are scheduled, corporate headquarters downloads a price change file to a computer server system at each store. Each store's assistant manager is responsible for checking the server for downloads and running the program that updates the store's price file at the authorized price update time. In comparison with having headquarters initiate the price update centrally, this approach to price updating will most likely:

    Correct Answer: D

    When price changes are managed by each store's assistant manager rather than being centrally updated by headquarters, the risk that item prices will sometimes be inaccurate increases. This is due to the potential for human error in checking for downloads, running the program correctly, and ensuring the update occurs at the authorized time. Centralized updates minimize such risks by automating the process and reducing the reliance on multiple individuals to perform the task correctly.

Discussion
thabashOption: D

is high risk that the prices not updates, it mention the server download the updated file to each showroom to update the price list, the risk here is if the file get curropted or not updated properly or failed to update , then the price will be not match the updated price list, epically if the new file has increase in the prices,

Natt90Option: D

How will this increase the risk, since Price Change Form' download will be triggered immediately?

Ivana2000Option: D

The question is confusing , I answered B because I though it refers to the central approach , but it is D because it refers to the each server store approach....

girltasticOption: D

I feel that as compared to the prices being pushed down by HQ, this process will increase the risk as there is human intervention.