CS Professional · Artificial Intelligence, Data Analytics and Cyber Security - Laws and Practice · Data Analytics
A board's audit committee deploys continuous-controls monitoring that tests 100% of journal entries every night rather than a sample. Which statement best reflects the governance benefit and its limitation?
Continuous-controls monitoring widens coverage to the entire population and detects issues sooner, but it does not replace judgement. Exceptions must still be investigated, and the results are only as dependable as the underlying data quality and the rules configured.
- AIt removes the need for any human judgement because full-population testing proves absence of fraud
- BIt improves coverage and timeliness of detection, but exceptions still need investigation and the data and rules must be reliableCorrect
- CIt is useful only for sampling, so it cannot cover full populations
- DIt guarantees compliance with all legal provisions once implemented
Explanation
Full-population testing raises coverage and speeds detection, but output quality depends on data integrity and well-designed rules, and flagged exceptions need human follow-up. It does not prove absence of fraud or guarantee legal compliance, and it is not limited to sampling.
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