Discover the most relevant techniques an internal auditor should employ when tackling the issue of excessive overtime pay in a company’s customer service call center. This comprehensive answer, tailored for the IIA-CIA-Part2 certification exam, explores the effectiveness of confirmation, trend analysis, and internal and external benchmarking in addressing this common audit finding.
Table of Contents
Question
When addressing the excessive overtime being paid to employees in an organization’s customer service call center, which of the following would be most relevant for the internal auditor to use?
1. Confirmation.
2. Trend analysis.
3. External benchmarking.
4. Internal benchmarking.
A. 1, 2, and 3.
B. 1, 2, and 4.
C. 1, 3, and 4.
D. 2, 3, and 4.
Answer
D. 2, 3, and 4.
Explanation
When addressing excessive overtime being paid to employees in an organization’s customer service call center, the most relevant techniques for the internal auditor to use would be:
2. Trend analysis
3. External benchmarking
4. Internal benchmarking
Trend analysis involves examining overtime data over time to identify patterns and changes. This can help determine if the excessive overtime is a recent development or a long-standing issue. It may also reveal seasonal spikes or if the problem is worsening.
External benchmarking compares the call center’s overtime metrics to industry standards and peer organizations. This provides context on whether the overtime is truly excessive compared to norms. If many peer call centers have similar overtime, it may point to an industry-wide challenge.
Internal benchmarking looks at overtime data across different departments, locations, or time periods within the same company. This can identify if the overtime issue is isolated to the call center or systemic. Comparing to internal groups with lower overtime can surface best practices to address the problem.
Confirmation, which involves verifying balances or information with a third party, is not as relevant for analyzing this overtime issue. The overtime data should already be accurate in the company’s own systems.
Therefore, the best answer is D, as trend analysis, external benchmarking and internal benchmarking together would provide a comprehensive understanding of the issue and paths to address it.
IIA-CIA-Part2 certification exam assessment practice question and answer (Q&A) dump including multiple choice questions (MCQ) and objective type questions, with detail explanation and reference available free, helpful to pass the IIA-CIA-Part2 exam and earn IIA-CIA-Part2 certification.