The statement is incorrect because Identity Security Cloud Search and reporting are not restricted to identity records. Search supports multiple governance data categories, and scheduled saved-search subscriptions can return records from the results tab associated with the saved search.

Searchable information includes identities as well as other important governance objects and operational records, including entitlements, access profiles, roles, events, and account activity. Audit reporting itself is implemented through Search, demonstrating that reporting extends well beyond identity queries. For example, administrators can investigate authentication events, provisioning activity, source-related events, access-request activity, and other audit information.

When a saved search is subscribed to, Identity Security Cloud generates recurring results based on the tab selected when the search was saved. Therefore, restricting scheduled reporting conceptually to identity-only searches would remove substantial audit and governance functionality that the platform expressly supports. SailPoint's documentation describes both the multiple Search data models and the ability of scheduled searches to return results from the selected results tab.

Study Guide Reference: Platform — Search Data Models, Saved Searches, Reporting and Scheduled Search Subscriptions.