Our Solutions for Your Audit Queries


HR Operations Audit

A Human Resources Operations Audit (HR Ops Audit) is a comprehensive method to review current human resources business process, policies, procedures, documentation and systems to identify needs for improvement and enhancement of the HR function.

HR Operations Audit Coverage

  • Overall HR Operations Business Process
  • Man Power Planning
  • Hiring and Onboarding
  • Benefits Arrangement
  • Compensation Payment Process
  • Performance evaluation process
  • Termination process and exit interviews
  • Job descriptions
  • Segregation of Duties within HR Team
  • Form review
  • Personnel file review
  • HR Reporting
  • Human Resources Information System (HRIS)

Purpose of HR Operations Audit

The purpose of an HR Operations Audit is to recognize strengths and identify any needs for improvement in the human resources function. A properly executed Audit will reveal problem areas and provide recommendations and suggestions for the remedy of these problems. Some of the reasons to conduct such a review include:

  • Ensuring the effective utilization of the organization’s human resources
  • Reviewing compliance in relation to internal administration of the organization
  • Instilling a sense of confidence in management and the human resources function
  • Maintaining or enhancing the organization and the department’s reputation
  • Establishing a baseline for future improvement for the function

 HR Operations Audit Process

 Our process consists of the following steps:

  • Pre-audit phone meeting and off-site review of HR related documentation
  • One to multiple days (depending on company size) on-site; interview of key staff,
  • Review of HR processes, employee files, and other documentation
  • Prepare detailed report of findings which identifies high, medium, and low priority
  • Audit Review Meeting to discuss results with management

Type of Audit Deliverables

  • Identification of operational risks within HR Department.
  • Recommended solutions to address concerns.
  • HR best practise for daily HR operations guidelines.
  • Recommendations to create effective and efficient HR business process model.


HR Compliance Audit

HR audits are used to assess the compliance of your human resources policies and procedures. They can diagnose issues before they become real problems and help you find the right solutions. But HR compliance audits can be used for more than just defining risk. They can be used to identify what you are doing right, help you improve inefficiencies, and reduce costs. An HR compliance audit can help you see how HR can better support your overall goals to build a better business.

Missteps are bound to happen, and are usually unintentional. Conducting regular and routine HR compliance audits can help your business avoid HR headaches and costly penalties. No matter how small your business is, it is becoming increasingly difficult for business owners to stay on top of constantly changing regulations, and for them to adjust practices quickly enough to remain compliant. Sometimes what is considered compliant today won’t be considered so tomorrow.

HR Compliance Audit Coverage

  • Law 13/2003
  • BPJS Kesehatan
  • BPJS Ketenagakerjaan
  • Income Tax & Report
  • Work Health and Safety
  • Severance
  • Employee Handbook
  • Overtime
  • Working Hours
  • Mandatory Government Reports

Self Check

Certainly HR compliance audit structures will vary by your organization’s needs. But some general things to think about are how your business structures positions and responsibilities, what laws and regulations might you be subject to, and whether you have an efficient record management system in place. Some questions to consider:

  • Are you aware of any missing or outdated policies or practices?
  • Is your employee handbook comprehensive and up to date?
  • Have all HR policy issues and procedures been communicated to management and employees?
  • How is recruitment of internal and external candidates conducted?
  • Are hiring procedures built and hiring managers trained to be objective?
  • Is your compensation system monitored by management?
  • Are jobs classified correctly as exempt vs. non-exempt?
  • Are employee benefits compliant with government regulations?
  • Are expected employee behaviors stated in company policies?
  • Are employees treated fairly and consistently in terms of compensation, discipline, advancement, etc.?
  • Are policies regarding discrimination and harassment explicitly stated?

HR Compliance Audit Process

 Our process consists of the following steps:

  • Pre-audit phone meeting and off-site review of HR related documentation
  • One to multiple days (depending on company size) on-site; interview of key staff,
  • review of HR processes, employee files, and other documentation
  • Prepare detailed report of findings which identifies high, medium, and low priority
  • Audit Review Meeting to discuss results with management

Type of Deliverables

  • Identification of compliance violations and compliance risks.
  • Recommended solutions to address concerns.
  • HR compliance guidelines.
  • Recommendations to create a legally safe working environment.


Due Diligence HR Audit

Acquisitions has many aspects, but one of the most important is human resources due diligence. When one firm acquires another, it also takes on the human capital behind that firm. A relationship is established between two HR teams as they evaluate human resources policies, procedures, and talent in the team itself as well as the company.

Due diligence is all about the HR team acquainting itself with new leadership, gaining the trust of new employees, and being empathetic to those affected by the acquisition. It isn’t something most people deal with on a monthly or even yearly basis, however. So, here’s everything you need to know.

Due Diligence HR Audit Coverage

The information systems team of the HR department needs to conduct an employee census off the bat. This census contains names, positions, salaries, and the date of hire for every employee affected by the acquisition.

It also contains confidential information related to employee relations, including any issues currently in litigation. This allows the acquiring company to fully understand the employee body they are taking on as well as any potential liability from litigation.

At the same time, it reveals any agreements the acquired company held with their employees from union efforts to pay raises. The acquiring company can then determine if their agreements and incentives are better, or find a unique path to encourage productivity by combining company efforts.

It’s highly unlikely that two companies share the same policies, procedures, and training methods. HR’s job is to ensure both companies offer the mandatory employee benefits and make the transition of these new policies as simple as possible.

Due diligence HR Audit will also review all of the employment files from both HR departments, checking for consistency and completeness. Records ranging from emergency contact information to work eligibility documentation and commendations should be reviewed.

  • Census info
  • Benefits plans
  • Compensation plans
  • Employment agreements
  • Union Contracts
  • Organization Structure
  • HR Compliance risks
  • Pending employment lawsuits
  • Turnover
  • Open requisitions
  • HR technology systems
  • HR contracts/vendor obligations
  • HR Policies
  • Leadership/Mgmt practices
  • Culture/ Values

What to Focus

  1. Any potential human resources issues that could result in a change in monetary value for the organization.
  2. Any cultural differences between the two workplaces that could greatly impact that success of the merger or acquisition.
  3. Areas where more information is needed to make a solid recommendation

Due Diligence Audit Process

  1. Problem Definition: Is the current management team not meeting your long-term goals, or do you want to evaluate your future management team before a potential merger or acquisition?
  2. Data Collection: We interview and test the management team members, and possibly other key people, to chart their ability, personality and potential.
  3. Analysis: The basis of data collection is linked to your current organisational structure and long-term business goals.
  4. Report: We compile insights and recommendations for any structural changes of your management team – or a recommendation for, or against, a proposed acquisition.

Audit Criteria

  1. Governance: The organization has appropriate structures in place to provide effective oversight of HR. Also, Roles and responsibilities related to oversight of HR are clearly defined, coordinated and communicated.
  2. Planning: An integrated HR planning process is in place that supports the objectives of the organization.
  3. Accountability: HRD roles and responsibilities are clear and support the achievement of objectives.
  4. Client Service: HRD services are being provided in a timely and effective manner. HR policies/directives have been developed that comply with current Labor Law.
  5. People: HR guidelines, tools and reports exist to support the management of human resources.
  6. Compliance: Compliance with HR policy requirements is monitored on a regular basis and corrective actions are taken in a timely manner.


Audit HR With Ease

With our effective HR Audit services we can take you from getting a quote, right through to your requirement; We then setup quick project plan, and immediately start the HR Audit Project for you.


Get In Touch

Main Office:

PT. Consulta Humaniora Indonesia

Epiwalk, Epicentrum Walk
Jl. HR Rasuna Said, Kuningan
Suite A529, Jakarta, Indonesia

Phone: +62 8111 623 549



Send Us A Quick Email