In performance auditing, which of the following must first be determined by the internal auditor?
In performance auditing, which of the following must first be determined by the internal auditor?
In performance auditing, the internal auditor must first determine management's objectives for the process. This is essential because the auditor needs to understand what management aims to achieve to evaluate whether those objectives are being met effectively. Without knowing these objectives, it would be impossible to assess the performance accurately, as there would be no baseline or goals to measure against.
A performance audit is basically seeing what management's goals are and ensuring that the business area is meeting those goals. So the first step is to identify just what management's objectives are so you know what you'll be checking to ensure they meet them.
May be to qualify with the concept of effectiveness audit (Operational)