Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 128

An internal auditor suspects that employee turnover is unusually high at the organization's primary manufacturing plant. To investigate this potential issue, which of the following analytical approaches is the auditor likely to use?

Answer options

Correct answer: C

Explanation

Benchmarking is the correct choice because it allows the auditor to compare employee turnover rates with industry standards or similar organizations. Ratio analysis and vertical analysis focus on financial performance metrics rather than workforce metrics, while cost-benefit analysis assesses the financial implications of decisions rather than turnover rates.