Generate an Excel/PDF workbook for H2R internal audit: manpower approval, recruitment, onboarding, employee master, attendance, payroll, PF/ESI/PT, salary TDS, exits, full-and-final settlement and HRMS access.
| Area | Risk | Control | Test | Evidence | Cadence |
|---|---|---|---|---|---|
| Manpower requisition | Positions are created or filled without approved budget, headcount plan or role justification. | Annual manpower plan, approved requisition workflow, budget check and delegation matrix. | Trace hires to approved requisitions, compare headcount to budget and review emergency/backfilled roles. | Manpower plan, requisition, budget file, org chart, approval workflow and headcount report. | Monthly / Hiring event |
| Recruitment BGV offer | Candidates are selected without evaluation, reference checks, conflict checks or offer approval. | Candidate evaluation file, offer approval, BGV checklist and conflict declaration. | Review recruitment files, match offer terms to approvals, inspect BGV completion and check referral/RP exceptions. | CV, interview evaluation, offer approval, BGV report, reference checks, declaration and exception approval. | Monthly |
| Joining employee master | Employee master is created with incomplete KYC, wrong bank details, wrong grade/location or duplicate records. | Joining checklist, maker-checker master creation, bank validation and duplicate employee review. | Match employee master to joining file, check PAN/bank evidence, search duplicates and review master change log. | Employee master, joining checklist, PAN, bank proof, ID/address proof, appointment letter and HRMS change log. | Monthly / Joining event |
| Attendance leave overtime | Payroll is processed using incorrect attendance, leave, overtime, shift or biometric data. | Attendance cut-off, leave approval, overtime approval and HR-payroll input reconciliation. | Reconcile attendance to payroll, review leave/overtime approvals, test manual corrections and check unusual overtime. | Attendance report, leave register, biometric extract, overtime sheet, payroll input and approval trail. | Monthly |
| Salary changes reimbursements | CTC changes, arrears, incentives, reimbursements or deductions are processed without approved basis. | Salary-change approval, variable-pay review, reimbursement policy and deduction exception review. | Trace increments/arrears to approvals, recompute variable-pay samples, review claims and check one-time payments. | Increment letter, payroll input, incentive working, reimbursement claims, policy, approval and exception report. | Monthly |
| Payroll bank upload | Payroll is inaccurate, duplicated, paid to wrong bank accounts, paid to inactive employees or released without maker-checker. | Payroll variance review, maker-checker bank upload, leaver hold control and net-pay reconciliation. | Compare payroll to prior month, trace bank upload to approved payroll, review leaver payments and duplicate bank accounts. | Payroll register, variance report, bank upload, payment approval, leaver list, bank statement and reconciliation. | Monthly |
| PF ESI PT compliance | Employees are wrongly included/excluded, contributions use incorrect wage bases or deposits/returns are delayed. | Statutory eligibility mapping, contribution review, challan/return reconciliation and compliance calendar. | Tie PF/ESI/PT workings to payroll, review excluded employees and wage basis, trace challans and delayed filings. | Payroll register, PF ECR, ESIC file, PT return/challan, compliance calendar and statutory reconciliation. | Monthly |
| Salary TDS Form 16 | Salary TDS is computed using stale declarations, wrong regime, missing previous-employer income or unsupported exemptions. | Investment declaration workflow, proof verification, TDS computation review and Form 16 reconciliation. | Review declarations/proofs, recompute TDS cases, check previous-employer income and tie TDS to challans/Form 16. | Form 12BB/declarations, proof files, TDS computation, payroll register, challans, Form 16 and 26AS/AIS support. | Monthly / Annual |
| Transfers exits FNF | Transfers, resignations, terminations, notice recovery, leave encashment, gratuity or F&F are not approved or accurate. | Transfer approval, exit checklist, asset/access clearance and F&F computation review. | Trace exits to approval, review F&F computation, check asset recovery/access removal and test post-exit payments. | Transfer/exit approval, resignation letter, clearance checklist, F&F working, gratuity/leave support and access closure. | Monthly / Exit event |
| HRMS access SoD | Users can create employees, change bank/CTC, approve attendance, run payroll or upload bank files without segregation. | Role-based HRMS access, SoD review, master-change monitoring and leaver access review. | Review HRMS/payroll users, test bank and salary master changes, check leavers/shared IDs and inspect override logs. | HRMS user list, payroll user matrix, master change log, leaver list, SoD report, override log and access review. | Monthly / Quarterly |
Use this with the H2R internal audit checklist, the payroll compliance calendar and the monitoring rules repository.
H2R internal audit is strongest when HR evidence, payroll evidence, statutory evidence and system access evidence are tested together. The workbook connects hiring approvals, joining documents, employee master data, attendance, salary changes, payroll, PF/ESI/PT, salary TDS, exits and HRMS access.
The Excel export gives auditors separate sheets for engagement scope, RCM rows, hiring/onboarding, employee master changes, attendance/payroll, statutory and TDS testing, exit/F&F/access testing, access/SoD and monitoring exceptions.
A CA firm is reviewing H2R controls for a company with multiple locations, monthly payroll, manual attendance corrections, PF/ESI mapping and frequent exits.
