HR Audit is an in-depth analysis of the Human Resources Management (HRM) function in the organization. The purpose of the audit is to assess independently, objectively and systematically the HR function in following fields:

• Compliance with Labor legislation and if its requirements are met;
• Achieving company goals in human resources management;
• Risks in human resources management are identified and assessed, and measures to protect the company and business from losses and damages are taken;
• What is the HRM function added value for the company;

The output of the HR audit is a report with identified and assessed strengths and weaknesses of the HR unit in the company, proposed approaches and measures for improving department efficiency,  where necessary.

In recent years the HR Audits, as the role of the very HR function, evolved from simple check-list with YES/NO answers for collecting facts to improved and comprehensive process, integral part of the company’s internal control, risk and strategic management for achieving its business objectives.