A large corporation acquired a smaller one. The large corporation was people oriented. The small corporation, however, had a reputation for using a hard line on its employees. It was technically competent and had a good product, but it had a history of heavy employee and management turnover.

Management in the larger corporation asked you to audit the Human Resources function with an emphasis on its administrative controls. The Director of Industrial Relations of the smaller corporation asked you, $$How can internal auditors, who do no have industrial relations expertise and who are steeped in accounting theory and practice, evaluate something as specialized as the Human Resources function?$$

Required:

Briefly describe three points you would make responding to the director.

List five administrative controls you would look for in the audit of the Human Resources function.