Problems in HR Audit          

The rules, regulations and systems for financial audit are well established. But it is very hard to audit personnel practices and policies. Personnel audit involves comparison with previous ratios, expenditure, rates of turnover etc., with those of other organisations and departments. The organisation by itself cannot be taken as standard for comparison and a decision arrived at. Therefore, it is hard to conduct the personnel audit. There might be a tendency to turn the survey into a fault-finding procedure. All employees may then try to pass the buck. The audit might create more difficulty than solutions. The audit has to be done carefully. It ought to evaluate things in an objective way, search out what has gone incorrect and suggest improvements. The emphasis ought to be on rectifying things instead of fault finding.