The objective of this review was to assess the overall effectiveness of human resource processes, with specific focus on time reporting accuracy and completeness. This included management’s process for ensuring that hours reported were worked and paid within the correct pay scale and differentials. In addition, the review included a high-level assessment of the hiring, recruiting and terminating processes.
Internal audit employed a risk-based methodology for this review using the following procedures:
- Reviewed policy and procedural documentation related to recruiting, hiring, time reporting and terminating employees.
- Conducted interviews with HR key personnel, scheduling and payroll departments to gain a full understanding of their processes, responsibilities and risk management activities (e.g., management controls, policies and procedures, monitoring reports, etc.).
- Created process maps for HR processes, identifying risks and controls and assessing gaps. Management requested the maps to assist in their process improvement efforts.
- Assessed through corroboration, observation and sample testing the operational effectiveness of key controls that ensure compliance with corporate policies and procedures.
- Identified control deficiencies and opportunities for operational improvement.
- Worked with management to develop action plans that are intended to enhance the overall effectiveness of risk management activities.