My experience has been that audits are not generated by just one single item. Out of line warranty expenses, high cost per vehicle, highfrequency opcodes, and total warranty dollars list on the top of your DA report will get you in trouble faster than any single occurance.
In a warranty (friendly ha ha) audit, computer generated punch time can be a double edged sword. If your techs clock time correctly via ERO and document there step by step process with accuracy then you will likely be OK. If your techs do not log time correctly or document well you can get torn to pieces on ERO or hybrid systems.
The best way to stay out of trouble is carefully monitor what is happening in your shop, pre-authorize the tech for OLH and then put your Auth code in after you have reviewed each event. This is or at least can be very time consuming, but, at least you will know exactly what is going on.
To answer your question, regular punch time is usually sufficient, although most of the system do have a seperate function to log OLH.
[This message has been edited by Service 1 (edited 10-22-2002).]