Human ResourcesWhen Should You Conduct an HR Audit?

May 18, 2022by Mikerash0

Is your team performing routine HR audits? HR practices, systems, and policies that are ineffective can be detrimental to your company. If these criteria are not constantly examined, a company may find itself in violation of labor regulations. For example, suffering severe consequences for failing to implement an employee safety program. An HR audit can assist you ensure that your employees and your company are set up for long-term success and compliance.


Perhaps you’ve forgotten how useful an HR audit can be for your company because it’s been so long since you’ve done one. Many things can change quickly in a corporation with its people, especially as we approach a post-pandemic era. This necessitates taking a step back and assessing where the organization’s human capital management is headed.




  • Don’t wait until fieldwork to ask questions; do it during the year. You should contact your auditor whenever you think about entering into a new transaction or an unusual transaction occurs. You can also approach your auditor for assistance if you are contemplating a new transaction so your auditor can obtain as much information as possible from federal, state, and local tax professionals regarding the possible impacts of the transaction.
  • Document every step of the way during the year. You will be able to provide the auditor with more quickly the supporting documentation they request and will spend less time searching for other records when proper documentation is kept.
  • Don’t put off reconciliations until the end of the year, you need to perform them monthly if not quarterly throughout the year. This allows you to resolve any issues you may have missed or not noticed before an audit.
  • Match the numbering in the prepared-by-client lists to the items you give the auditors. This will limit the number of queries the auditor has about where items are, and it will be easier for you to assess your own readiness for the audit when compared to the prepared-by-client lists.
  • If the audit is going to be a long one, consider talking with your auditor prior about having some days off in between to catch up on day-to-day tasks and be able to follow up and complete your work since it is time consuming, but necessary to have done.




The length of time it takes to begin and finish an audit depends on the size of the organization and the quality of its internal bookkeeping, accounting, and record keeping.

The audit procedure should take anywhere from three to six weeks if a company’s records are in good order.



A human resources audit examines current policies, processes, paperwork, and systems, identifying areas that need to be improved or updated in order to be compliant with the latest rules and regulations. Whether or not there is a critical issue, you should try to conduct an audit on a regular basis. MCDA CCG offers you a FREE audit and consultation. 


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8 Common Business Bookkeeping and Accounting Weaknesses

6 Financial Tips for Clean Business Books All Year

How A Year-Round CPA Can Help Your Business Beyond Tax Filing

Is Your Business Outgrowing Your Accounting Software? 7 Telltale Signs

CFO vs. Financial Controller: Key Differences to Understand

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