What should an IS auditor recommend if there are discrepancies in product profitability reports between departments?

Recommending data governance practices in the case of discrepancies in product profitability reports between departments is a sound choice because data governance establishes a framework for data management across an organization. It ensures data quality, integrity, consistency, and accountability throughout all departments. When discrepancies arise, it often points to issues in how data is collected, processed, and reported.

Data governance involves defining policies, standards, and roles related to data management, which would help standardize reporting practices across departments. This ensures that all teams are accessing and utilizing the same definitions, calculations, and data sources, thereby minimizing conflicts and discrepancies in reporting. By implementing effective data governance, the organization can foster greater trust in the accuracy and reliability of its reports.

Other options may address specific aspects of reporting but do not tackle the fundamental issue of data quality and consistency across the organization. For instance, user acceptance testing primarily focuses on validating that a particular system meets user requirements, while standard software tools for reports may standardize format but do not ensure the integrity or compatibility of the underlying data. Management sign-off on report requirements can help clarify expectations but doesn't inherently provide a robust framework for ongoing data accuracy and consistency. Thus, advocating for data governance practices is the most comprehensive strategy to resolve discrepancies in profitability reports.