Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 255

In which of following scenarios is the internal auditor performing benchmarking?

Answer options

• A. The auditor compares information from one period with the same information from the prior period.
• B. The auditor compares new information to his general knowledge of the organization.
• C. The auditor compares information he collected with similar information from another source.
• D. The auditor compares expected outcomes with actual results.

Correct answer: C

Explanation

The correct answer is C because benchmarking involves comparing collected information with similar data from other sources to evaluate performance. Option A refers to trend analysis, option B involves subjective knowledge comparison, and option D is about variance analysis, none of which constitute benchmarking.