Question

An audit report found the following:

The Human Resources (never one resource) Department in the Peruvian Division has recently hired mostly from the Inca ethnic community, indicating that job openings have not been publicly advertised except near Cusco and Machu Picchu which resulted in the lack of a diverse applicant pool. This was not a fraud, but a lack of strong outreach to all potential recruits.

Based on the above answer the following:

Condition – what happened?

Criteria – what is the standard? (the proper procedure that should have been in place to avoid such thing)

Cause – why did it happen?

Effect – cost or problem?

Recommendation – how does the auditor (you) recommend fixing the problem?

Answer 1

7 Answer : (1) Condition. What happened ? In present scenerio, the timan resources department has hired the employees from a particular communitas. (Inca Ethnic), which was due to lack of proper public advertisement and it has resulted in the lack of diverse applicant pool. ii) Criteria - What is the standard ? The proper procedure that should have been in place to avoid such thing is as follows - • One of the key function of HR department is recruitment of the employees. • HR dept can attract the top talents by following steps ① Browse social networking sites such as linked in @ Make recruitment more personal By Keeping recruitment process short @ By past recruitment experience of the candidate, one can rely on such persona • The main focus in this question is regarding the lack of diverse applicant pool. One must focus on the diverse applicant pool and this helps the companies in many ways, which is discussed as сом -

Attracting diverse applicants gives us a large hiring pool → More candidates may apply. if one knows the company appreciatus, diversity and varion) The diversity strengths your work force le providing experience and background her son different perspectives By changing job advertisement and recruits I method, it enables to reach more candidates from diverse backgrounds. → els diversity expands, one can focus on the qualifications of candidates and make proper hiring decision, which benefits the company at a whole (ii) cause - Why did it happen? Because of lack of an effective model for the recruitment procen One must follow the below process for recruiting the proper candidates 1) Identifying who should be recruited as a reaching targeted individuals by way of proper advertisiments. 2) Determining best timing for recruitment & designing planning, evaluating and managing the entire recruitment operation .. (iv) Effect The effect of the given condition is a cost to the company because the employce is a person who is the main backbone of

company's operations. If proper employee is recruited, he becomes an asset of the company. In the same way if wrong person is recruited , he becomes a liability, which is a cost to the company V Recommendation as an auditor , one can recommend to firstly implement a proper HR department, as it plays a very important role in a company. Because of one wrong step taken by them, company's revenue would be at a toss.