Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 34

During a review of performance measures in an organization's purchasing function, the preliminary survey indicates that most of the measures have been in use for some time. The internal auditor should:

Answer options

• A. Review the data that was used to develop the measures.
• B. Perform benchmarking in order to verify that the measures being used are meaningful.
• C. Establish the history of the measures and reasons for use.
• D. Report that the measures being used are out-of-date and should be improved.

Correct answer: B

Explanation

The correct answer is B because benchmarking allows the internal auditor to compare the organization's performance measures with industry standards, ensuring their relevance and effectiveness. Option A is incorrect as reviewing the data alone does not assess the current relevance of the measures. Option C does not address whether the measures are still meaningful, and option D prematurely concludes that the measures are out-of-date without validating their effectiveness through benchmarking.