What Exactly Is an HR Audit and How Is It Conducted? Seeking Guidance!

Understanding HR Audits

Can anybody shed some light on what an HR Audit is and how it is conducted? It would be greatly helpful to me if you could provide guidance on the same.

Regards,
Indrani.

Hi Indrani,

According to my best knowledge, HR Audit means checking the master rolls, wages registers, attendance registers of staff and workers, leave forms, tour claim forms, employees' database, etc. All these activities depend purely on the company's HR department. HR Audit scrutinizes all HR activities in the organization.

Regards,
Vivek

Dear Indrani, Greetings of the day! Vivek is correct, but I would like to know from you if you need information about an HR audit or a social audit.

With regards,
Sameer K. Ghosh

I am talking about HR Audit, how it is conducted in organizations, what all things it covers, etc.

One thing that comes to my mind is that whatever details you have mentioned—such as checking master rolls, wage registers, tour claim forms, etc.—are maintained by the HR department itself. In that case, who conducts the HR audit?

According to my best knowledge, an HR audit involves checking the master rolls, wage registers, attendance registers of staff and workers, leave forms, tour claim forms, employee database, etc. All these activities are solely handled by the company's HR department. An HR audit scrutinizes all HR activities throughout the organization.

Regards,
Vivek

Hi,

According to my best knowledge, HR audit means the verification of the Muster Roll, register of wages, challan copies of statutory payments, records under the Contract Labour (R&A) Act, returns of bonus, returns of minimum wages, Notice under the Contract Labour Act, Mandays, employee details including PF, ESI No, copies of statutory registrations, etc.

All of these depend upon the company's HR department.

Best regards,

SHESH

Please note that this is not the only area of audit. The recruitment process verification, skill evaluation, appraisals, training, and training evaluation are also the areas that are audited.

Regards,
tchhrao

Hi, I am using an HR audit as a tool for the following strategic, legal, and operational requirements and compliance. We have identified our HR operational risks, best practices, health and safety, and included them in our operational audit template. We have developed a template for each requirement, and these audits are scheduled as part of our annual planner.

Dear Indrani,

A human resources audit usually involves a review of all HR policies, practices, and procedures, whether or not they are formal. It includes reviewing documents, interviewing human resources professionals from different areas of the organization, interviewing some managers at different levels of the organization, and possibly interviewing in-house employment counsel.

The audit can be performed in-house. However, it is worth considering whether to use an outside consultant who has no personal stake in what is working and whether everything complies with the law.

Thank you,
Shakeel

Hi,

Along with the registers your members mentioned, renewal of certificates under the prescribed acts (factories, shops, transports, NGOs, etc.), exhibiting the laws on your premises, taking precautionary steps like first aid, fire safety, and the documents for fire drills, maintenance, replacement of extinguishers, plants, boilers, etc. Other registered forms include those for gratuity, ESIC, PF registers, challans, statements for the current and previous years, and so on.

I have attached an HR audit file. I hope it is helpful to you. If you need any further clarification regarding the HR audit, please feel free to ask. My email ID is [Email Removed For Privacy Reasons].

With regards,
Sameer K Ghosh

One thing that comes to my mind is that whatever details you have mentioned—such as checking master rolls, wage registers, tour claim forms, etc.—are typically maintained by the HR department itself. In that case, who conducts the HR audit?

This depends entirely on HR management. Sometimes, HR audits are conducted through internal auditing, while other times they are done through external auditing.

Regards