C.K. THAKUR INSTITUTE OF MGMT.

STUDIES & RESEARCH

HUMAN RESOURCE AUDIT
SUBMITTED BY ARVIND ELLE ROLL NO . 13

Prof. Shravani

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 Maintenance/Technology Administration Employment/Recruiting Policies and procedures (including employee Orientation handbook) Terminations 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

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