Human Resources Internal Audit Services

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Strategic HR Oversight: Audit Services for Peak Performance

Every company must deal with human resource issues for the smooth functioning of its business operations. An internal human resources audit is a kind of audit that evaluates and examines the company's HR policies, practices, and various other procedures. The main objective behind the human resources internal audit is to detect and identify the loopholes and spots to improve the efficiency of the business operations, creating an employee-centric company. These human resources internal audit covers areas from organizations' policies to benefit packages to various other job descriptions to employees' salaries and wages, that fit under the umbrella of the human resource department of the respective company. A company with proper and efficient management of human resources increases the chance of a business's success rate. But how should a company understand if its HR department is running smoothly in managing the company team? Thus, the HR internal audit comes into the picture to evaluate the function of the HR management.

A human resources internal audit is a systematic procedure to evaluate the company’s current HR practices, documents, policies, and other procedures. HR internal audit services can be obtained by either the in-house HR internal audit team of the company or by hiring an HR internal audit professional like Enterslice, who shall help the companies in evaluating the important factors of the company for creating a financially healthy future and also provides a deep analyzation of the organization's qualitative aspects that impacts the culture of the respective organizations.

Enterslice Diverse Types of Human Resources Internal Audit

With the growing economy across the globe, the business operations of the organizations shall also be required to meet the updated version of the business model to remain aligned with the market trends. Thus, the HR policies of the company shall also be evaluated from time to time through human resources' internal audit services through professionals. Here are the given 5 most popular and common types of HR internal audit

Functional Audit

Functional audit is not limited to meeting the various compliance requirements. However, this includes how the organizations, HR policies, or systems operate throughout the employee's lifecycle functions. The HR internal functional audit includes getting familiar with various approaches, determining the company's current abilities and effectiveness, and determining areas that can be improved for better functioning of the business operations overall.

Culture Audit

It is often said that a successful company reflects a strong culture, increasing employee retention, and various other benefits to an organization. Besides the business context and diversity of the company, the culture of the organization takes the company to another level at a great height. But how does a company know if their company's culture is effective? Thus, the culture audit comes into the picture; this audit helps the company study the various organization's norms, philosophies, values, etc., and if they hinder or add to the growth and vision of the organization's business goals.

Strategic Audit

A strategic audit has to be conducted when an organization is going to make a big decision, such as mergers and acquisitions. The strategic audit helps the company to identify the risk factors by highlighting the gaps and improvements aligning with various policies and procedures.

Compliance HR Audit

This compliance HR audit is the most common internal HR audit that every company implements. This audit compares the organization's current HR practices against the companies' rules and policies if the same aligns. However, through this audit, the company can detect the gaps and discrepancies between the requirements according to the company’s rules and regulations vs the current HR policy situation in the respective company.

Policy Audit

A thorough evaluation of the current organization policies helps the company to mark its presence and awareness of various other critical policies. This policy audit assists the company in understanding the involvement of stakeholders in policy-making, how far such policies have been implemented by the respective company, and how such policies can be improved by the respective company.

Your Guide to Conducting Human Resources Internal Audits

An internal human resources audit is one of the significant undertakings by organizations for better functioning of the business operations by achieving an employee-centric environment in a company's culture. Given below are some of how enterslice HR internal audit professionals conduct the said audit of a company's HR policies

Define the objective of the HR internal audit

We shall first determine the objective behind the human resources internal audit of a company, with the help of the internal HR team of a company. Our team will set a realistic timeline to tackle the HR policies step by step.

Creating an Audit set of Questions

It is the responsibility of the HR internal audit professionals to invest time and prepare a document to collect information on various subjects of the inquiry. A framework for the questionnaire has to be prepared by the human resources internal audit team, ensuring that such a questionnaire is completed.

Data Collection

The enterslice team of human resources' internal audit shall collect data from the respective companies on various HR practices and evaluate the same by identifying the loopholes and improving the same.

Benchmark the findings

To understand the audit findings, the HR internal audit team will compare them with the various guidelines in HR policies and functions. Our team of professionals in HR internal audit shall compare the HR policies with other market standards such as similar-sized enterprises, national standards, internal organizational data, etc.


After completing the due evaluation of the HR policies of the company, our team of human resources internal audit professionals shall provide the company and its management feedback on what actions to take for addressing the issues and awareness of various necessary changes the company must implement, for effective business operations of the respective organisations.

Creating an Action Plan

After identifying the areas of improvement in the HR policies and operations in the organization's structure, our team of HR consultants shall create an action plan to overcome and address such issues detected during the HR internal audit.

Continuous Improvement of an Audit

To remain updated with the current market trends, organizations shall not stop improving so that they can achieve their competitive advantages. Our HR consultancy service shall help the company monitor the respective company’s HR systems, ensuring that they are up-to-date.

Explore Core Elements of HR Internal Audit with Enterslice

Given below are the most common elements that are considered by enterslice professionals while reviewing the HR internal audit of a company:

Legal Obligations

One of the major elements of the human resource internal audit is to check whether the company's human resources functions align with the current market standard laws and regulations. It ensures that the company policies and procedures are aligned with the current laws and regulations and on how the organization treats its employees.

Evaluation Of Performance

Performance metrics shall be introduced to evaluate the performance of the organization's HR department toward the contributions of the business goals. This evaluation of the HR department's performance depends from company to company.

People Administration

Another important role of the HR internal audit is to examine the initiatives taken by the organization's HR department in managing the people or employees of such company, such as individual performance, morale, departmental organizations, employee response, etc.


Another area to be evaluated under the human resources internal audit is the communications ratio between the HR department and the employees. Under this audit, an auditor shall check on how the HR department is communicating with the employees on various companies' missions, goals, and plans.

Maintaining Employees

One of the major responsibilities of the HR department of a company is to ensure that talented employees continue working in the organization. The responsibility of the HR internal audit is to make sure that the employee's remunerations or salaries align with the market rates standards and how effectively the HR department is retaining the employees of an organization.

Participation and Identification of Employees

With the growing economy, it is indeed very important that the employees are part of various corporate events to ensure the business growth and success.


Constant feedback from the employees of the organizations is very important to improve employee behaviour. This HR internal audit makes it easier by serving the necessary feedback for improvements in the policies and functions.

Discover the Benefits of HR Internal Audit with Enterslice

Some of the major benefits behind the human resources internal audit are as follows

  • For a successful business accomplishment, every organization must have a strategic business plan. Every employee must be aware of all the strategic plans of the company; thus, it is the responsibility of HR management to provide or circulate the messages to the concerned employees of the said company. This information shall help the employees to actively participate in the decision-making procedures.
  • Human resources internal audit ensures that the employees in the HR department are aware that the interest of an organization should always come first. Generally, the HR department shall be clear with their respective roles and responsibilities that come under their purview. Job transparency in the company is also maintained and looked after by the HR department.
  • An HR internal audit helps the company to enhance its competency, by identifying the advantages and disadvantages of the current administrative functioning of the organizations. If any flaws and loopholes are spotted while auditing, an HR internal audit team shall plan a method to boost such operations.
  • When evaluating the HR department operations of the company, an HR internal audit is indeed important. It helps the company to have an account of the employee's and staff's performance and boosts leadership skills. However, these human resources internal audit also helps the company's HR department to redesign or restructure various training and awareness programs if necessary.

Enterslice Your Guide to Human Resources Internal Audit

Enterslice is one of India's leading consultancy companies, helping companies grow their business. Enterslice as a service provider comprises various services such as audit and assurance, legal advisory, risk assurance, compliance and regulations, etc. However, several professionals of our company, Enterslice, help organizations perform seamless business operations. We at Enterslice understand the requirement for human resources internal audit services. Our HR consultancy team has dozens of experiences in performing various companies or industries' HR internal audit services.

Every company desires to check the efficiency of its department operations and its contributions toward the growth of the organization's business goals. For this, an audit plays a key role in identifying the kinds of improvements required. However, our Enterslice professionals are ready to serve you with various types of audits and HR audits, assisting the company to have a better understanding of the current systems. Contact us at Enterslice before it's too late to enhance awareness of your organization.

Why choose HR internal Audit services?

Some of the major nine reasons to conduct a human resources internal audit and how the professional HR consultancy of Enterslice helps the company to maintain and manage the HR policies and functions are

  • A human resources internal audit helps the company to meet the compliance requirements according to the updated laws and regulations. We shall help the company avoid legal liabilities and various other penalties by complying with the relevant laws and regulations associated with HR policies.
  • We shall help the company through a human resources internal audit to cut down the guesswork around the employees' benefits packages, such as by deciding which healthcare benefits for employees are right and align with the business goals of the respective organizations. This HR internal audit services by an enterslice team shall also assist the company in simplifying the organization's annual renewal fees and process of enrolment.
  • With the ever-changing business operations across the globe, it is indeed important for a company to stay updated with the new laws and regulations. Engaging human resources' internal audit services like Enterslice shall not only align with the new employment laws and regulations but also keep the organization up-to-date with the current business trends that would impact the business growth of an organization.
  • One of the most important elements behind the retention of employees in a company is HR policies on the fair pay scale. This HR internal audit assists the company in ensuring that employees are paid equally or in a fair manner.
  • The increasing number of freelancers and contractors has increased the confusion in determining the classifications of the employees. However, this human resource internal audit service with Enterslice shall help the company accurately classify the kinds of employees and what kinds of employees a company shall hire.
  • An HR internal audit helps the company to evaluate and reduce the company’s employee turnover. We shall help organizations determine the reasons why employees are leaving the company and, thus, accordingly, make a plan to improve employee retention.
  • Human resources' internal audit of a company also helps the organizations frame and improve the company's structures and accordingly update various job descriptions, just like the way the financial institutions evaluate the finances and budget of the respective enterprises.
  • With the changing generations, an enterslice human resources internal audit team shall help the company to align with the millennial workforce that will impact the growth of an organization.
  • Lastly, the HR internal audit helps the company ensure that the organizations address harassment in the workplace, thus ensuring a company has a safe working environment.

Frequently Asked Questions

A Human Resources Internal Audit is a method to evaluate the company's HR policies, procedures, and practices. The primary objective behind the HR internal audit is to check the efficiency and effectiveness of said policies in managing the workforce of the respective company.

Human Resources Internal Audit helps the company detect and identify risks and loopholes connected with the organization's HR department operations. This includes legal compliance, data security, resources, fair remuneration, etc. However, it assists the HR department in improving the overall business growth of the organization

The areas that Human Resources Internal Audit covers are recruitment procedures, onboarding assessment, data management, training and development, labour laws, compliance, performance management, etc.

Depending on the size, requirements, and types of organizations, the HR internal audit may have to be implemented by the organizations. However, it is often recommended to conduct HR internal audit annually for better accounting of the HR policies and regulations.

Generally, an internal audit team of a company or hiring an external HR audit professional or both can conduct the Human Resources Internal Audit of a respective company.

Some of the major benefits of HR internal audits are fulfilling compliance, identifying risk, employee retention, better allocation of resources, meeting business goals, etc.

An organization can prepare for a Human Resources Internal Audit by keeping a record, maintaining updated HR policies documentation, etc.

Yes, HR internal audit identifies areas for process improvement such as determining workflows, strengthening communications, technology solutions, etc.

After the completion of the Human Resources Internal Audit, a report is prepared highlighting the loopholes and improvements that an HR department has to work on. Thus, the management of the company and stakeholders will take action to fill such a gap.

The HR internal audit identifies and detects the various potential risks like noncompliance, data violation, insufficient resources, etc. Thus, these internal human resources audits help the company fight against such potential risks to the company's operations.

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