Human Resource Audit

Human Resources Management


Sutapa Das

Human Resource Audit

Hi! if anybody can please give me some information on Human Resource Audit and Human Resource Accounting (about the two processes and their application).



Regarding Human Resources Audit & Human Resources Accounting

A human resources audit is the process of verification of all HR activities carried out in any small or large firm.
The process normally includes:
1) Verification of job registers of employees
2) Checking job analysis
3) Assuring the payroll & compensation plans as per the labor laws
4) Assuring the smooth working of organization under industrial relation norms of government.
Human resources accounting is the process of calculating the cost incurred by organization on the employees for their behavioral & professional development.

Rahul Goyal
Student (MBA), India

Purpose and Reasons for a Human Resource Audit

The purpose of a HR Audit is to recognize strengths and identify any needs for improvement in the human resources function.
A properly executed audit will reveal problem areas and provide recommendations and suggestions for the remedy of these problems. Some of the reasons to conduct such a review include:
• Ensuring the effective utilization of the organization’s human resources.
• Reviewing compliance concerns with the myriad of administrative regulations.
• Instilling a sense of confidence in management and the human resources function.
• Maintaining or enhancing the organization’s and the department’s reputation in the community.
• Performing a “due diligence” review for shareholders or potential investors/owners.
• Establishing a baseline for future improvement of the HR function.
Do you think it is necessary to do a HR audits in every organisation on a regular basis (like financial accounts audits are done periodically), or is it done only if a company is facing problems relating to HR?

April Halliburton
HR Consultant, United States

The Importance of Human Resource Management Audits

Human Resources Management auditing is a practice that many organizations only perform with the thre... Sign up


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