What does an audit compare actual performance to?

An audit primarily compares actual performance to set standards. Set standards refer to the established benchmarks, criteria, or guidelines that an organization aims to meet in terms of safety, quality, productivity, and regulatory compliance. By examining actual performance against these predefined standards, auditors can assess whether operations are being conducted effectively and if they are in compliance with appropriate regulations and safety protocols.

This comparison assists organizations in identifying discrepancies between expected and actual performance, highlighting areas needing improvement, and ensuring that operations align with organizational goals and industry regulations. It helps in the evaluation of internal controls and operational adherence, facilitating necessary adjustments to improve safety and efficiency in the workplace.