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During an engagement to review the personnel function, an internal auditor notes that there are several employee benefit programs and that participation in some of the programs is optional. Which of the following is the best information for assessing the acceptability of various benefit programs to employees?

1) Discuss satisfaction levels with program participants.
2) Evaluate program participation ratios and their trends.
3) Discuss satisfaction levels with the director of personnel.
4) Evaluate methods used to make employees aware of available program options.

User Benares
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Final answer:

The best method to assess the acceptability of employee benefit programs is to evaluate program participation ratios and trends alongside discussing satisfaction with participants. Care must be taken to consider potential biases and the effectiveness of communication regarding program options.

Step-by-step explanation:

The best information for assessing the acceptability of various employee benefit programs to the employees would be to evaluate program participation ratios and their trends. This offers quantitative data indicating the level of employee engagement and preference in the optional benefit programs. Moreover, it may reveal patterns of increased or decreased usage over time, helping the auditor understand which benefits are valued most by employees.

Additionally, discussing satisfaction levels with program participants can present qualitative insights that complement the quantitative data from participation ratios. However, participants might have a biased positive view if they have chosen to participate. Similarly, evaluators should be wary of solely relying on satisfaction levels reported by the director of personnel, as they may have a vested interest in portraying the programs in a positive light.

Finally, evaluating the methods used to make employees aware of the available program options is critical. If employees are not adequately informed about the programs, low participation may not accurately reflect the program's acceptability. Therefore, understanding the communication strategies is key to ensuring that participation data are reflecting true employee preferences and are not a result of poor awareness.

User Poldixd
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