Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 257

During an audit of the human resources department, an internal auditor adopts benchmarking to test the employee turnover rate. How should the internal auditor apply this technique?

Answer options

• A. Compare turnover in the organization to published turnover rates of peer organizations.
• B. Compare turnover in one period with turnover in the previous period in the organization.
• C. Compare turnover in the period to total employees in the organization.
• D. Compare turnover with the auditor's general knowledge of the organization.

Correct answer: A

Explanation

The correct answer, A, involves comparing the organization's turnover rate to those of similar organizations, providing a relevant benchmark for evaluation. Options B, C, and D do not offer external comparisons and instead focus on internal metrics or personal knowledge, which do not provide the same level of insight into the organization's performance relative to its peers.