Internal Audit | Checklist for Audit of HR & Payroll Processing to be used by Internal Auditor

The audit of Human Resources (HR) and Payroll Processing plays a critical role in ensuring the accuracy, compliance, and efficiency of employee-related functions within an organization. This checklist is designed to assist internal auditors in conducting a comprehensive audit of HR and payroll processes. By systematically evaluating various aspects such as HR policies, payroll management, statutory compliance, and data accuracy, the internal auditor can provide valuable insights and recommendations to enhance HR and payroll operations. The checklist covers essential areas such as recruitment, employee records, payroll calculations, statutory deductions, and reporting. By employing this checklist, the internal auditor can assess the effectiveness of controls, identify potential risks, and help the organization maintain a robust HR and payroll system.

I. Has the internal auditor ensured the availability of the HR Policy that has been framed

II. Has the internal auditor checked the process of employment, training, and safety of manpower

III. Has the internal auditor checked for any ISO requirements regarding the formation of the human resource policy

IV. Has the internal auditor ensured whether the incentive/bonus and other benefits to employees have been documented

V. Has the internal auditor verified if these benefits have been properly disclosed to the employees

VI. Has the internal auditor scrutinized the master data in accordance with the necessary requirements

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