C.K. THAKUR INSTITUTE OF MGMT.

STUDIES & RESEARCH

HUMAN RESOURCE AUDIT

SUBMITTED BY
ARVIND ELLE
Prof. Shravani
ROLL NO . 13
 Why Do An Audit
1)To insure the effective utilization of an
organization’s human resources.
2)To review compliance with a myriad of
administrative regulations.
3)To instill a sense of confidence in management and
the human resources function that it is well
managed and prepared to meet potential
challenges.
4)To maintain or enhance the organization’s and the
department’s reputation in the community.
What is an HR Audit?
 An audit is a means by which an organization can
measure where it currently stands and determine
what it has to accomplish to improve its human
resources function. It involves systematically
reviewing all aspects of human resources, usually in
a checklist fashion, ensuring that government
regulations and company policies are being adhered
to. The key to an audit is to remember it is a learning
or discovery tool, not a test. There will always be
room for improvement in every organization.
Meaning and purpose of HRA
 The Human Resources (HR) Audit is a process of
examining policies, procedures, documentation,
systems, and practices with respect to an
organization’s HR functions.
 The purpose of the audit is to reveal the strengths
and weaknesses in the organization's human
resource system, and any issues needing resolution.
 The audit works best when the focus is on analyzing
and improving the HR function in the organization.
OBJECTIVES OF HRA
 The audit itself is a diagnostic tool, not a
prescriptive instrument.
 It will helps to identify what you are missing or
need to improve, and it may even tell you
what you need to do to address these issues.
 It is most useful when an organization is ready
to act on the findings, and to evolve its HR
function to a level where its full potential to
support the organization’s mission and
objectives can be realized.
What does a full HR Audit entail ?

Legal compliance Employee Relations

Compensation/Salary Files/Record
Administration Maintenance/Technology
Employment/Recruiting Policies and procedures
Orientation (including employee
Terminations handbook)
Training and
Development
Initiating the Audit
1. AUDIT SCOPE
the extent and boundaries of the audit in terms of
factors such as physical location and organizational
activities as well as the manner of reporting
the scope of the audit is determined by the
management and EMR
the auditee should normally be consulted when
determining the scope of the audit
the resources committed to the audit should be
sufficient to meet its intended scope
2. PRELIMINARY DOCUMENT REVIEW

at the beginning of the audit process, the EMR

should review the organization’s documentation
such as environmental policy statements,
programs, records or manuals for meeting its
requirements.
Use should be made of all appropriate
background information on the auditees.
Preparing the Audit
1. AUDIT PLAN
 The audit plan should include:
 audit objectives and scope
 audit criteria
 area to be audited
 high audit priority concerns
 applicable procedures/manuals
 reference documents
 time duration of major audit activities
 dates and places where the audit is to be conducted
 audit team
 schedule of meetings
2. AUDIT-TEAM ASSIGNMENTS

As appropriate, each audit-team member

should be assigned specific EM elements,
functions, or activities to audit and be
instructed on the audit procedure to follow.
Such assignments should be made by the EMR,
in consultation with the audit-team members
concerned. During the audit, the EMR may
make changes to the work assignments to
ensure optimal achievement of the audit
objectives
3. WORKING DOCUMENTS

The working documents required to facilitate the auditor’s investigations

may include:

 forms for documenting supporting audit evidence

and audit findings
 procedures and checklists used for evaluating EMS
elements
 records of meetings
 copies of applicable standards to be followed

Working documents should be maintained at least until completion of

the audit
Conducting the Audit
1. OPENING MEETING
An opening meeting is required. The purpose is to:

 review the scope, objectives and audit plan and agree to the
audit timetable
 provide a short summary of the methods and procedures to be
used to conduct the audit
 confirm that the resources and facilities needed by the auditor
are available
 confirm the time and date of the closing meeting
 promote the active participation by the auditee
 review relevant site safety and emergency procedures before the
site audit
2. COLLECTING AUDIT EVIDENCE

Audit evidence should be collected through interviews,

examination of documents and observation of activities and
conditions.
Indications of nonconformity to the EMS audit criteria should
be recorded
Information gathered through interviews should be verified by
acquiring supporting information from independent sources,
such as observations, records and results of existing
measurements. Non-verifiable statements should be
identified as such
Appropriate samples should be collected
3. AUDIT FINDINGS

 The audit-team should review all of their audit evidence to determine

where the EM does not conform to the EM audit criteria.
 Nonconformities should be documented in a clear, concise manner
and supported by audit evidence.
 Audit findings should be reviewed with the responsible auditee
manager with a view to obtaining acknowledgement of the factual
basis of all findings of nonconformities
 If within the agreed scope, details of audit findings of conformity may
also be documented, but with due care to avoid any implication of
absolute assurance
4. CLOSING MEETING

Required before writing the report

Purpose is to present audit findings to the auditee in such a
manner as to obtain their clear understanding and
acknowledgement of the factual basis of the audit findings
Disagreement should be resolved, if possible before EMR
issues the report
Final decisions on the significance and description of the
audit findings ultimately rest with the EMR, though the
auditee may still disagree with these findings
Audit Report
1. PREPARATION OF AUDIT REPORT

The audit report is prepared under the

direction of the EMR, who is responsible for
its accuracy and completeness
The topics to be addressed in the audit
report should be those determined in the
audit plan.
2. CONTENTS

1. dated and signed by the EMR

2. should contain findings/summary with reference to
supporting evidences
3. the agreed objectives, scope and plan of the audit
4. the agreed criteria, including a list of reference
documents against which the audit was conducted
5. dates and times
6. identification of the auditees' representatives
participating in the audit
7. the identification of the audit-team members
8. distribution list
9. summary of the audit process including any
obstacles encountered
10.audit conclusions on conformance, suitability, and
effectiveness
THANKS