When Performing Benchmarking During the Planning Phase of a Performance

question 241

Multiple Choice

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

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

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Definitions:

Insurance Policy

A contractual agreement between an individual or entity and an insurance company, outlining the terms for the insurer to compensate the insured for specific losses in exchange for premiums paid.

Premium

An amount paid in addition to a standard price, often for insurance, or a higher or more privileged level of service or product.

Expected Value

A calculated average of all possible outcomes of a particular random variable, weighted by their respective probabilities.

Certain Income

Certain income refers to a guaranteed or fixed amount of earnings that an individual or entity can expect to receive over a period.