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What is an HR Audit, and what does one typically include?


Ed Battle
Title: Chief Financial Officer
Company: SVFG
(Chief Financial Officer, SVFG) |

Review of employee files to ensure they contain fully executed copies of offer letters, Proprietary Rights Agreements, I-9 information (or applicable visas or work permits), Option Documents, emergecny contact info and any change requests for title, salary, etc. This applies not only to current employees but all former employees particularily with Proprietary Rights. Audit also ensure documents are kept and stored correctly as not all docs can be kept in one file.

Topic Expert
Wayne Spivak
Title: President & CFO
LinkedIn Profile
(President & CFO, |

And if you are in New York State, the Wage Theft Protection Act forms (be careful you used the correct form and checked the correct answer on "EXEMPT") otherwise the State will have a field day accessing fines....

Topic Expert
Barrett Peterson
Title: Senior Manager, Actg Stnds & Analysis
Company: TTX
(Senior Manager, Actg Stnds & Analysis, TTX) |

Ed's list is good one. Additional matters may include all compensaton contracts, policy administration documentation such as severance policies, records of employee benefit choices and the storage of those to conform to HIPPA and Privace Act requirements, some of which extend to 3rd party service providers [medical data must be stored on U.S. based servers, regarless of who owns the servers, for example], deferred compensation participant election documentation, and Form 5500 filing compliance if performed by HR.

Topic Expert
Malak Kazan
Title: VP, Special Projects
Company: ERI Economic Research Institute
(VP, Special Projects, ERI Economic Research Institute) |

The requirements for an HR Audit depends on the context. To achieve compliance with SOX and state and federal employment regulations? In general, I concur with the list provided above and add a requirement to have a separate file exclusively for medical records, claims, disputes, etc. Should not be combined with HR records and kept in a secure location. I found this document which provides a comprehensive framework for an audit (albeit it is for state of Minnesota) . For SOX, depending on the organization and resources available, you can have documented SOPs and processes flow charts showing governance and oversight of HR transactions that have financial impact (promotions, compensation increases, incentive awards, etc.) Hope this helps.

Stephanie Geurts
Title: CFO
Company: AH West Group
(CFO, AH West Group) |

In addition to items listed above you would want to verify that all payroll records (W-4 and state/local forms if applicable) match what is in the payroll system. All I9/EVerify documents have to be separate from HR forms, also as noted above any documents that would have HIPAA implications need to be separate. If you do work for Federal/State Agencies you may be required to have a code of ethics, as well as other policies in place such as Affirmative Action/EEO/Unlawful Harassment/Fraud Prevention etc.

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