During a Review of Performance Measures in an Organization's Purchasing

question 200

Multiple Choice

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:

• 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• D) Report that the measures being used are out-of-date and should be improved.

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Definitions:

Due Diligence

An investigative process performed by investors or companies to assess the viability, risks, and opportunities of a prospective deal, investment, or partnership.

Venture Capitalist

An investor who provides capital to startups or small businesses with high growth potential in exchange for equity or partial ownership.

Promising Venture

An enterprise or venture that shows a lot of potential for success and growth due to its innovative approach or market position.

Prototype

An early sample, model, or release of a product built to test a concept or process or to act as a thing to be replicated or learned from.