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:
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:
Performing benchmarking allows the internal auditor to compare the organization's performance measures against industry standards or best practices. This helps to verify that the measures being used are meaningful and provide value, rather than simply relying on outdated or irrelevant metrics. Benchmarking can identify areas for improvement and ensure that the organization's performance measures are relevant and effective in assessing its purchasing function.
I think that answer A is the most reliable answer, as it's not reasonable to perform a benchmark analysis, which considered an advisory service, to validate that the current performance measures are reliable.
What would be the auditor's objective if they are to "review the data that was used to develop the measures", the measures being in place for long does not necessarily mean that they are outdated or not applicable, therefore the auditor has to first verify whether these are meaningful