The versioning function does not appear to be working properly.  When a user makes a change to a list item, a new version is created and the user's name is captured.  However, when someone else approves that item, a new version is not being created and the approver's name is overriding the name of the person who made the change.

Ive been looking over some of my list items and it appears the version history works correctly whenever the user enters text.  If a user only updates a check-box on an item then the version they started is then overridden by an auditor who approved the change.

If the user marks the check-box and enters text in another field then it appears to update correctly.

If the user initially only marked the check-box.  Then went in later and added text to another field.  Each of those changes created a separate version, and both versions remained after the auditor approved the changes.

Its odd that the marking of the check-box remained as its own version in this case, but not when the check-box is the only change prior to the auditor approving it. 

Is this by design?  Is there a way to correct this issue?  Has anyone else seen this behavior in SharePoint 2010