Human Resources – Risks and Controls

Education

Human Resources – Risks and Controls

Apr 13, 2021

Typical stages of HR cycle includes the following:

1. Recruiting and on boarding:

v Recruiting is the process of hiring a new employee. HR department here assist in hiring by conducting activities like placing job ads, selecting potential candidates, conducting interviews, and assessment to choose the most suitable candidate.

v On boarding is the process of getting the successful applicant set up in the system as a new employee.

2. Orientation and Career Planning:

v Orientation is the process by which the employee becomes a member of the company’s work force through learning her new job duties, establishing relationships with co-workers and supervisors and developing a niche.

v Career planning is the stage at which the employee and her supervisors work out her long-term career goals with the company.

3. Career Development:

v Career development opportunities are essential to keep an employee engaged with the company over time.

v This can include professional growth and training to prepare the employee for more responsible positions with the company.

4. Termination or Transition:

v Some employees will leave a company through retirement after a long and successful career. Others will choose to move on to other opportunities or be laid off.

v HR is responsible to ensure that during transition all policies and procedures are properly followed, conducting exit interview and finally removing the employee from the system.

Configuration

Risks and Control Objectives (Configuration-Human Resources)

	Risk	Control Objective
1.	Employees who have left the company continue to have system access.	System access to be immediately removed when employees leave the company.
2.	Employees have system access in excess of their job requirements.	Employees should be given system access based on a ‘need to know’ basis and to perform their job function.

Masters

Risks and Control Objectives (Masters-Human Resources)

	Risk	Control Objective
1	Additions to the payroll master files do not represent valid employees.	Additions to the payroll master files represent valid employees.
2	Few employees are not added to the payroll master files.	All new employees are added to the payroll master files.
3	Terminated employees are not removed from the payroll master files.	Terminated employees are removed from the payroll master files.
4	Employees are terminated without following statutory requirements.	Employees are only Within terminated statutory requirements.
5	Deletions from the payroll master files do not represent valid terminations.	Deletions from the payroll master files represent valid terminations.
6	Invalid changes are made to the payroll master files.	Only valid changes are made to the payroll master files.
7	Changes to the payroll master files are not accurate.	Changes made to payroll master file are accurate.
8	Changes to the payroll master files are not processed in a timely manner.	Changes to the payroll master files are processed in a timely manner.
9	Payroll master file data is not up to date.	Payroll master file data remain up to date.
10	System access to process employee master changes has not been restricted to the authorized users.	System access to process employee master changes has been restricted to the authorized users.