The internal audit document summarizes an upcoming audit of HR processes at an organization. The audit will evaluate the effectiveness and accuracy of processes like onboarding, internal movements, separation, talent management, and performance management. It outlines the audit objective, topics to be covered, compliance-based methodology, 5-step process for conducting the audit, and recommendations to be provided in the final report. An appendix includes sample documents for review and a template for the final audit report.

1. INTERNAL AUDIT
HR Processes

2. Overview
 Audit Objective
 HR Topics Covered
 Method for Audit
 Steps of conducting Audit
 Report and Recommendations
 Appendix
a. Sample Document Review List
b. Sample Audit Report
Internal Audit_HR Processes

3. Audit Objective
The purpose of this audit to evaluate the
effectiveness and accuracy of HR Processes
made and implemented at an organisation.
Internal Audit_HR Processes Back to
Overview

4. HR Topics Covered
Internal Audit_HR Processes
 On boarding
 Internal Movements
 Separation
 Talent Management
 Performance Management
The audit team has to relevant documentation for initial review related to the
processes to be audited.
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Overview

5. Method for Audit
Compliance approach
 The audit team here will examine a sample of documents
related to HR processes.
 The purpose is to ensure compliance to laws and company
policies and procedures.
 By sampling elements of the human resources information
system, the audit team will look for deviations.
 The team can then determine the degree of compliance
achieved.
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Overview

6. Steps of conducting Audit
Step 1
• Communicating the purpose and benefits of the audit to all involved.
Step 2
• Allocating appropriate resources to ensure the necessary skills, budget, tools and
materials are available.
Step 3
• Comparing current practices and procedures against the laws and company policies
and procedures.
Step 4
• Identifying any gaps between the current and ideal conditions.
Step 5
• Making recommendations and suggestions to remedy the identified issues.
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Overview

7. Report and Recommendations
 The audit report must clearly communicate its findings and their consequences.
 The report should prioritize the corrective actions:
• First priority should be correcting violations of the law.
• Next, tackling the inefficiencies that rob HR of its true return on investment.
• Finally, implementing best practices, such as leveraging technology and
developing talent.
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Overview

8. APPENDIX
Internal Audit_HR Processes

9. Internal Audit_HR Processes
Sample Document Review List
On boarding
Sample Joining Kit including all mandatory
government forms
Employee Handbook issued to employees
Sample Employment Letter
Sample Employee File
Internal Movements
Policy for internal transfers defined by the
company
Sample Employee request form for internal
movement
Sample approval from the authorised officer
Sample internal movement letter
Separation
Exit policy and process defined by the
company
Non-compete Agreements, Confidentiality
Agreements
Termination Checklist
Sample No Dues
Sample Exit Interview Form
Any Ex-employee file
Talent Management
Sample job descriptions for positions within
the company
Job Postings/Advertisements
Employment Agency/Search Firm Contrac
Resume/Candidate Tracking System
Interview questions
Pre-Employment Tests
Any background check policy used by the
company
A sample offer letter
A sample rejection letter and new hire
onboarding file
Performance Management
Policy defined by the company
Performance Review/Evaluation Form
Performance Improvement Plans
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Overview

10. Internal Audit_HR Processes
Final Audit Report
Company Name
Date of Audit
Objective
Personnel Involved
S.No. Name Designation
HR Process Evidence of Compliance Investigated Compliance confirmed Deviations Identified Corrections suggested
Onboarding
Sample Joining Kit including all
mandatory government forms
Employee Handbook issued to
employees
Sample Employment Letter
Sample Employee File
Internal Movements
Policy for internal transfers
defined by the company
Sample Employee request form
for internal movement
Sample approval from the
authorised officer
Sample internal movement letter
Recommended priority list for suggested corrections:
1
2
3
Signed
Authorised Signatory
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Overview