Benchmarking in internal auditing involves comparing the performance or practices of the audited entity against a standard or best practice, which often involves using information from other organizations or sources as a reference. This process helps identify areas for improvement and set performance targets. Thus, comparing the collected information with similar information from another source is the correct definition of benchmarking.
Reference:
The Institute of Internal Auditors (IIA) Practice Guide: Internal Audit and Organizational Performance IIA Standard 1220 - Due Professional Care