Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 28

When performing benchmarking during the planning phase of a performance audit, an internal auditor should:

Answer options

• A. Determine the current performance gap.
• B. Project future performance levels.
• C. Develop functional action plans.
• D. Identify comparative organizations.

Correct answer: D

Explanation

The correct answer is D because identifying comparative organizations is crucial for benchmarking, allowing the auditor to assess performance against peers or industry standards. Options A and B focus on current and future performance metrics, which are important but come after establishing benchmarks. Option C is about planning actions, which is not the immediate focus during the benchmarking process.