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Human Resources Audit

A practical starting point for assessing whether people processes are authorised, documented, fair and aligned with organisational policies from recruitment through exit.

01 · AUDIT OBJECTIVE

What are we trying to establish?

Determine whether people processes are authorised, documented, fair and aligned with organisational policies from recruitment through exit.

02 · KEY RISKS

Risks worth paying attention to

Unauthorised or poorly documented recruitment
Incomplete employee records
Weak performance management
Inaccurate leave and attendance records
Poor exit and access revocation controls
Non-compliance with employment requirements
03 · DOCUMENTS & DATA

What should you request?

  • Human Resources policies and organisation structure
  • Employee master list and personnel files
  • Recruitment and approval records
  • Performance appraisal records
  • Leave and attendance reports
  • Training records
  • Disciplinary records
  • Exit clearance and termination records
04 · CONTROLS TO UNDERSTAND

Understand the process before testing.

  • Who initiates, reviews and approves transactions?
  • Which duties should be separated?
  • What system controls and approval limits apply?
  • How are exceptions identified, approved and monitored?
  • How does management know key controls actually operated?
05 · AUDIT PROCEDURES

Practical tests you can perform

1

Test recruitment approvals and supporting documents

Obtain appropriate evidence, investigate exceptions and document your conclusion.

2

Review completeness of selected personnel files

Obtain appropriate evidence, investigate exceptions and document your conclusion.

3

Verify promotions and changes to approved authority

Obtain appropriate evidence, investigate exceptions and document your conclusion.

4

Review performance appraisal completion

Obtain appropriate evidence, investigate exceptions and document your conclusion.

5

Test leave balances and attendance controls

Obtain appropriate evidence, investigate exceptions and document your conclusion.

6

Review mandatory training completion

Obtain appropriate evidence, investigate exceptions and document your conclusion.

7

Check exit clearance and timely access removal

Obtain appropriate evidence, investigate exceptions and document your conclusion.

8

Analyse employee turnover and recurring vacancies

Obtain appropriate evidence, investigate exceptions and document your conclusion.

06 · RED FLAGS

Things that should make you look deeper

  • Transactions or activities outside normal patterns
  • Missing or retrospective approvals
  • Repeated exceptions without root-cause action
  • Manual adjustments with weak supporting evidence
  • Key controls dependent on one person
  • Management reports that cannot be reconciled to source records
07 · QUESTIONS TO ASK

Questions that can open up the process

  • What can go wrong in this process?
  • Which controls are most important, and who performs them?
  • Where does the process depend heavily on manual intervention?
  • Which exceptions occur most often, and why?
  • What information does management use to know the process is working?
GO DEEPER

Need a more detailed checklist?

Steal My Checklist contains ready-to-use audit procedures designed to help you structure fieldwork across key business areas.

Get Steal My Checklist