Question

What is human resources and how does it relate to auditing? Is HR and payroll the same? ...if not, than what is the difference, explain? Why is HR and payroll important to a business? Why is it important to you as an employee?"

Answer 1

Answer)

Human resources are the man force who work for an organisation and the department that manages such man force and maintain relation with them is called human resources department. It is related to the audit as it is the duty of the Auditor to verify the procedures, policies, systems that they follow are in line with the guidelines laid by the organisation and report on any defaults, improvements etc for enhancement of functions of the organization.

Payroll and HR are not the same.

HR main functions is to recruiting, staffing, employee development, employee relationship, promotions, determination of Salaries/wages whereas payroll functions are to just pay compensation to the employees which may be Salary or superannuation or retrechment, Maintainance of attendance etc.

HR is important to an organization as it lays the policies, manage employees, helps in reducing the employee costs etc whereas payroll tracks the correct attendence, pays the correct compensations, deals with employees taxes etc.

For an employee they are very important as they deals with employee development when necessary, they provide appraisal for the performance, they are the persons with who we can reach directly in case of any need etc and payroll is what the deals with employee finance, pays compensation, deduct taxes etc