Professional Documents
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Like any other audit of the accounts of firm or organization, there was also a distinct
audit called Human Resource Audit. Human Resource Audit includes the Audit of an
organization when it was taken up comprehensively. Generally the purpose of Audit is
meant for verification of Accounts, Financial Statements, Budget, Profit and Loss
Account, Quarterly, Half yearly, yearly Balance Sheets, Statements of Receipts and
Payments , Ledger Books, Invoices, bills, Vouchers, Income & Expenditure statements
etc. which are commonly relates to fiscal discipline. However, it is pertinent to note that
the Comprehensive Audit, besides the above aspects, must necessarily observe, verify,
analyze, identify, the aims and objectives, goals, the policies, Programmes, Plans of an
organization, the way in which the firm spent money on Human Resources, Recruitment,
Selection, Performance, Welfare of the employees etc. in order to realize its goals, aims
and objectives. This item of work can be termed as Human Resource Audit. Strictly
speaking, it can be regarded as an Inspection on Administrative aspects. It aims at
looking the following items of audit/Inspection:
Human Resource Audit can also be termed as Personnel Management Audit. In India,
the Comptroller and Auditor General of India, will take up the Audit of the Accounts of
the Various Departments, organizations, Government Enterprises, Undertakings. His
Audit includes the Human Resource Audit. The CAG will analyze critically the policies of
the schemes, its aims and objectives, realities, how far the realization of the aims and
objectives derived with special reference to the funds allotted, spent and expenditure
booked on the Human Resources.
Human Resource Audit actually reflects on the examination and evaluation of the Plans,
Policies, Practices, Procedures, Programmes, in order to determine the effectiveness and
efficiency and practicability of the Human Resource Management and to have a check on
the work done by the Management whether the Mission, Vision, Objectives, goals,
Policies, Procedures and Programmes, have been fully implemented to yield desired
results and achievement of the targets fixed. This audit also makes suggestions for future
improvement on the Managerial Policies and Programmes, on the strength of the
findings/outcomes derived from the previous Audit.
Objectives of the Human Resource Audit
To review the performance of the Human Resource Department and its relative
activities in order to assess the effectiveness on the implementation of the various
policies to realize the Organizational goals.
To identify the gaps, lapses, irregularities, short-comings, in the implementation
of the Policies, procedures, practices, directives, of the Human Resource
Department and to suggest remedial actions.
To know the factors which are detrimental to the non-implementation or wrong
implementation of the planned Programmes and activities.
To suggest measures and corrective steps to rectify the mistakes, shortcomings if
any, for future guidance, and advise for effective performance of the work of the
Human Resource Department.
To evaluate the Personnel staff and employees with reference to the Performance
Appraisal Reports and suggest suitable recommendations for improving the
efficiency of the employees.
To evaluate the job chart of the Human Resource Managers, Executives,
Administrative Officers, Executive Officers, Recruitment Officers, whether they
have implemented the directives and guidelines for effective Management of the
Human resources in their respective Departments.
The performances of the Human Resource Management may have to be evaluated with
reference to the aims and objectives, Policies framed by the Management of the firm.
Each and every activity of the Human Resource Management has to be assessed by
means of collecting information from the Human Resource personnel involved in the
aspect and after assessing the performance of the Human Resources Department
personnel, an elaborative Audit Report on Human Resource Management and Policies
may have to be prepared and furnished. The following are the aspects on which the
assessment has to be done to prepare the Human Resource Audit Report.
1. Personal Policy
2. Human Resource Planning
3. Recruitment, Selection and Placement
4. Human Resource Training Development
5. Transfers and Promotions
6. Performance Appraisal Reports
7. Employee Relations
8. Communications, Suggestion schemes, Areas of participation
9. Compensation, Rewards, Benefits and Services
10. Welfare Activities undertaking by the Management.
OTHER ASPECTS
The Human Resource Audit also covers the following aspects and suggests suitable
recommendations: