PERSONNEL AUDIT
Submitted To: Prof. Sharmila Kulkarni
Group Members
• Manendra shukla 010132
• Nilesh Tiwari 010146
• Mou Chakravorty 010157
• Anjali Singh 010174
• Manasi Gaikwad 010195
Road Map
Auditing
Financial Auditing
Personnel / HR
Personnel Audit
Objectives
Need for Personnel Auditing
Scope Of Personnel Auditing
Approaches of Personnel
auditing
Process of Personnel Auditing
Benefits of Personnel Auditing
Task of Auditors
Steps to HR Research
Audit Report
What is an Audit?
Evaluation of a person, organization, system, process,
enterprise, project or product.
According to ICAI,
“Auditing is the independent examination of financial
information of any entity, whether profit oriented or not, and
irrespective of its size or legal form, when such an
examination is conducted with a view to expressing an
opinion thereon."
What is Financial Audit ?
Verification of the financial statements of a legal
entity, with a view to express an audit opinion.
Provide assurance that the financial statements are
presented fairly, in all material respects, and/or give
a true and fair view.
It enhance the degree of confidence of intended
users in the financial statements.
What is Personnel/ HR
Main Features:Builds competency in workforceDevelops commitmentAdaptability
Human
Resource
Team of individuals
Who make an workforce
For an organization
Personnel Audit
Detailed analysis of a particular area of the company, associated with its human resources or with human resource management.
When is it used?On a regular basis in companies who are interested in
long-term growth of quality of its human resources.When undergoing changes on a larger scale (change of
company strategy, restructuring, merger or acquisition).
To acquire data for personnel & career planning or for identification of employees’ development needs.
Objectives of Personnel Audit
To review the whole system of management
programme
To seek explanations and information's
To evaluate the implementation of policies
To evaluate the Personnel staff and employees
Need for Personnel Auditing
Evaluation of HR and their management. Identification of weaker sections and
recommendations for the same. Means of stabilizing key employees, identification of
top talent and personal reserves. Optimization of processes and organizational
structures Developing internal communication Optimum utilisation of Human Resource
Management
Scope of Audit
Audit of Human Resource function
Audit of Managerial compliance
Audit of Employee Satisfaction
Audit of Corporate Strategy
Approaches to Personnel Audit
Comparative Approach
Outside Authority Approach
Statistical Approach
Compliance Approach
M.B.O.
SCOPE
HR FUNCTION
MANAGERIAL COMPLIANCE
EMPLOYEE SATISFACTION
CORPORATE STRATEGY
APPROACHES
COMPARATIVE
OUTSIDE AUTHORITY
STATISTICAL
COMPLIANCE
M.B.O
HUMAN RESOURCE RESEARCH
EVALUATION REPORT
PROCESS OF PERSONNEL AUDITING
Benefits of Personnel auditing
Identification of the contribution to the organisation
Improvement of the Professional image
Clarification of duties and responsibilities
Finding critical personnel problems
A thorough review of the departments information
system
Tasks of Auditors Identify who is responsible for each activity.
Determine the objectives sought by each activity.
Review the policies and procedures used to achieve these
activities.
Prepare a report commending proper objectives, policies, and
procedures.
Develop an action plan to correct errors in each activity.
Follow up the action plan to see if it solved the problems
found through the audit.
Steps to HR research
Interview
Questionnaire / Surveys
Historical Analysis
External information
The Audit Report
The audit report is a comprehensive description of
human resource activities that includes both
recommendations for effective practices and for
improving practices that are less effective.