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.