I agree with you GEP, and I have seen some obscene examples of claims elsewhere which were paid out because the insurance company said so (the claim being without merit but being only ~£20k) but if say you receive 500 CVs from a job advert, and you interview just 10 of them, and you are a very small business (of the order of 1 or 2 PAYE employees) it will be practically impossible for anybody to question how you picked those 10.
A funny one I heard a while ago: of the 500 CVs, you bin a randomly chosen 50%, on the basis that you don't want to employ unlucky people