AUDIT SCOPE

Audit Location: Source N’ Staff Head Office, Olongapo City, Zambales

Audit Scope: The operational audit covers the thorough inspection and evaluation of the Source N’
Staff’s automated recruitment system's efficacy and reliability. The task of operational audit provides
assurance throughout every aspect of Source N’ Staff operations about the extent to which
managerial supervision over the automated recruiting system guarantee that:
A) Key risks were identified, evaluated, and addressed accordingly;
B) Systems in development are monitored to ensure that adequate internal controls over the
use of automated recruiting systems are incorporated in and are aligned with the
demands of the organization;
C) Appropriate laws, regulations, and standards are strictly adhered to;
D) System operations are in conformity with the entity's guidelines and processes.;
E) System operations are carried out in an effective, efficient, and cost-effective manner;

Timeframe

The audit engagement will end at the period of six months starting January 1, 2023 until
June 30, 2023.

Planning Phase - Submit a notification letter to the head

(January 2023)
- Set a meeting with management to make an audit plan and settle the
audit time table

- Require management to submit working paper

- Determining the scope, demographic of interest, method of testing and

announcement of the audit

- Issue the Audit Plan to the Audit Committee, management and those
charged with governance

Conducting Fieldwork - Determining whether the process or program being evaluated is well-
(February - March 2023) designed in order to make sure that the related goals and objectives are
likely to be met.

- Examine whether the controls in place are functioning as intended by

management.

- Conduct interview, review the laws and regulation, make observation

and examine documents

Reporting Result - An audit observation memo will be used to share the audit's findings
(April 2023) and request that management respond with a plan for corrective action
and a timeline for its implementation.

Follow up - To ensure that plans are carried out, all management corrective action
(May - June 2023) plans and audit recommendations are monitored.
Major Processes:
The audit engagement includes the following major processes:
A) Verification;
B) Observation;
C) Review; and
D) Initial Testing of the Automated Recruitment Software

Key Controls:
A) Data Input and Determining Corroborative Assessment Criteria - The discrimination does not
come to the system itself but to those employees who input the data in the system. The entity
shall ensure the proper implementation of the Labor Code of the Philippines and dissemination
of memorandum on which data will be inputted in the system in order to get rid of risks in
inconsistency of hiring process and irrelevant discrimination of the data inserted.

B) Implementation of Security System for Applicant’s Profile Confidentiality - One of the

greatest risks of utilizing automated recruitment system is the fact that it can easily leak the
important information of the applicants. This will not only ruin the image of the entity but at the
same time can also cause the downfall of the venture. The implementation of security system
must adhere with Republic Act No. 10173, otherwise known as the Data Privacy Act of 2012.

C) Proper Detection of System Error - When using computer software, system error is inevitable
and is the riskiest part of the recruitment process. The error can occur whenever a command
cannot be acknowledged by an operating system or goes against the procedural guidelines of the
entity. The entity can prevent and lessen this risk by implementing the Son-Father-Grandfather
backup method and weekly inspection of the systems being utilized.