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?

Question

Options

• ACompare turnover m the organization to published turnover rates of peer organizations.
• BCompare turnover in one period with turnover in the previous period in the organization
• CCompare turnover in the period to total employees in the organization
• DCompare turnover with the auditor's general knowledge of the organization

• A
  89% (31)
• B
  3% (1)
• C
  6% (2)
• D
  3% (1)

Explanation

When using benchmarking to test the employee turnover rate, the internal auditor should compare the organization's turnover rate to the published turnover rates of peer organizations. This method provides a relevant standard or point of reference to evaluate the organization's performance relative to similar entities. By using external benchmarks, the auditor can identify whether the turnover rate is above or below industry norms, which helps in assessing the effectiveness of the organization's HR practices.

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